Tackling EV Battery Safety and Disposal Challenges

The Facts -

State Regulations on EV Battery Safety Amid Hurricane Concerns

As hurricane season heightens concerns over electric vehicle (EV) battery safety, states are exploring regulations for handling and managing these batteries, especially due to risks from saltwater intrusion.

Two emerging U.S. state-level policy solutions for EV battery management include a core exchange program and extended producer responsibility (EPR) initiatives. While California's proposed "responsible end-of-life management" program was vetoed, New Jersey enacted an EPR law, requiring EV battery producers to submit management plans to the state’s Department of Environmental Protection.

The federal government supports domestic EV battery recycling with grants and tax incentives, aiming to establish a circular battery economy and reduce environmental impacts. Proponents argue that this could mitigate the emissions, labor issues, and resource utilization associated with mining for critical minerals.

Understanding Lithium-Ion EV Batteries

Lithium-ion batteries, prevalent in U.S. electric vehicles, primarily use nickel-manganese-cobalt (NMC) or lithium-iron-phosphate (LFP) blends. NMC batteries offer a longer driving range but are more prone to fire. They are also more valuable for recycling due to the materials used.

The Environmental Protection Agency (EPA) recognizes lithium-ion batteries as potential hazardous waste due to their ignitability and reactivity, increasing fire risks when improperly managed.

State-Level Initiatives

New Jersey

In January 2024, New Jersey pioneered an EPR law for EV batteries. The Electric and Hybrid Vehicle Battery Management Act mandates producers to register with NJ DEP by January 2025 and submit annual reports starting in 2026. Producers must implement a battery management plan including collection, recycling, and disposal strategies.

California

The California Environmental Protection Agency evaluated lithium-ion EV battery management policies. Proposed legislation was vetoed, but Governor Newsom urged further exploration of EPR models. More details can be found in the veto message.

Federal Measures and Incentives

EPA highlights the hazards of lithium-ion battery disposal, proposing universal waste standards to enhance safety and recycling. Federal initiatives include the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, providing $3 billion for new recycling facilities and tax credits for EVs with recycled battery materials.

Efforts are underway to establish battery collection best practices. The EPA plans to release a report in 2024 and conduct working sessions for labeling and collection guidelines set for 2026.

Legal Developments

In September 2024, SK Battery America Inc. settled a $31 million lawsuit after a recycling center fire, highlighting the risks of mishandling lithium-ion battery waste. The Georgia Environmental Protection Division fined SK Battery $33,000 for violations.

Questions about hazardous waste disposal or EV battery compliance can be directed to Elizabeth Haskins or Noelle E. Wooten at Baker Donelson.

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