New Colorado Legislation Successfully Mandates Responsible Recycling of EV Batteries

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      There has been considerable discussion regarding the recycling of EV batteries, along with significant agreements between automakers and recycling companies. This is certainly a positive development, as recycling reduces the need for newly mined raw materials for batteries, thus further minimizing the environmental impact of EVs. However, the concept alone isn’t sufficient to ensure the success of battery recycling. This is where a new law in Colorado becomes significant.

      Last week, Governor Jared Polis signed the Promoting Responsible End-of-Life Management of Electric Vehicle Batteries Act, the first legislation of its kind in the United States. According to a blog post from the Union of Concerned Scientists (UCS), this law mandates that batteries be recycled if they can't be repurposed, placing the responsibility on automakers. It also outlines recovery rates for essential battery materials and mandates reporting requirements to track recycling efforts.

      The law primarily obligates automakers to either reuse or recycle battery packs that they possess, as well as those from third parties. Importantly, when an EV is disposed of, the automaker is required to collect its battery pack at no cost and arrange for its recycling or repurposing for uses such as stationary power. End users have the option to retain their batteries if they choose, but this regulation ensures that unwanted batteries are not merely discarded.

      For batteries to be recycled, 90% of nickel and cobalt and 50% of lithium must be recovered in an intermediate form (with the latter rising to 80% by 2031) during the so-called "black mass" phase before the materials are fully separated. This effectively eliminates smelting, which generates higher emissions with lower material recovery, as noted by the UCS.

      Automakers are also required to report to the state on the quantity of batteries recovered, the rates of materials retrieved from the recycling process, and various other metrics. Newly produced batteries will carry essential information regarding their chemistry, capacity, hazardous substances, and recall information to facilitate recycling. Additionally, battery health data will be shared with third parties for tracking, enabling users to make informed decisions about whether to repurpose or recycle a battery.

      Securing an adequate supply of batteries is crucial for the feasibility of recycling. In 2021, research firm Wood Mackenzie projected that large-scale recycling wouldn’t be feasible until 2030 due to insufficient used battery availability, and declining EV sales linked to previous policies could delay this timeline even further. In recent years, several automakers—such as Audi, BMW, Ford, Toyota, and Volkswagen—have entered into recycling agreements with Redwood Materials, a company established by former Tesla CTO JB Straubel. If the supply of recyclable batteries remains low, the amount of recovered materials will not significantly alleviate the demand for raw materials needed for new battery production.

      The Colorado law aims to maximize the availability of batteries. Although it isn’t the largest market for new cars, Colorado is relatively accommodating for EVs, meaning that a substantial number of battery packs will be accessible as more EVs reach the end of their lifecycle. The reporting requirements are also expected to provide clarity on whether recycling or repurposing is preferable by equipping individuals with the necessary information for informed decisions, rather than having advocates for either option compete for the same battery supply.

      Typically, California leads in EV policy, but this time Colorado is taking the initiative. Similar legislation—Senate Bill 615—was approved by the state legislature in 2024 but vetoed by Governor Gavin Newsom. Efforts to pass battery-recycling bills have also failed in Florida, Massachusetts, Nevada, New Mexico, and Washington State. For the foreseeable future, it appears unlikely that there will be any progress at the federal level. For now, Colorado stands as a model for the rest of the country to emulate.