New Jersey passes EV battery recycling legislation

The New Jersey Legislature has passed a bill it says is the first in the nation to create industry guidance for the recycling of lithium-ion vehicle batteries.

The Electric and Hybrid Vehicle Battery Management Act (S-3723/A5365) provides a framework for the collection, transportation, remanufacturing, reuse, recycling and responsible disposal of propulsion batteries found in electric and hybrid-electric cars and trucks.

“New Jersey has taken a forward-looking and holistic view of the true value of these batteries,” says Sen. Bob Smith, chairman of the New Jersey Senate Environment and Energy Committee and sponsor of the bill, which was introduced March 13. “We developed guidance for those in the growing recycling industry that will support innovation, job creation and environmental stewardship from reusing materials and parts.”

According to state legislators, the bill, which passed both houses by a 66-0 vote, aims to support the creation of a circular economy surrounding electric vehicle (EV) batteries in New Jersey by keeping those batteries out of landfills; reusing materials to decrease the cost of new batteries; incentivizing job creation in the state; and reducing reliance on foreign mining and the importing of rare minerals.

As the first EV batteries are now starting to reach end-of-life, New Jersey legislators say the bill will require battery producers to submit a battery management plan to the State Department of Environmental Protection (DEP). These management plans will include planned methods for the acceptance and transport of batteries. The bill also will require an outline of the means of recycling, reuse or repurposing of batteries. Legislators say it allows for new material or other recycling companies to utilize the batteries or components and supports manufacturers in their own recycling efforts.

The bill states that, beginning Jan. 1, 2027, a “propulsion” battery sold in the state, whether embedded in a vehicle or not, will need to include a permanent label providing information about the battery in accordance with rules and regulations adopted by the DEP prior to selling, importing or distributing the battery for use in the state.

The bill describes a propulsion battery as an electrical energy storage device, consisting of one or more individual battery modules or battery cells, which are used to supply power to propel an electric or hybrid road vehicle. It adds that propulsion batteries include, but are not limited to, lithium-ion and nickel-metal hydride batteries. The term “propulsion battery” does not include a starter battery or a battery used for, or embedded in, products for industrial applications.

Additionally, no later than six months after the effective date of the act, the DEP will conduct a needs assessment to determine the availability of authorized propulsion battery recyclers and related infrastructure, both public and private, needed to implement the provisions of the act. The DEP will be able to use a qualified third-party organization to conduct the needs assessment, which the bill requires to be completed no later than 18 months after the effective date of the act.

According to a news release from New Jersey Senate Democrats, “As EV adoption continues to increase domestically, the need for lithium-ion batteries will grow. With the EV Battery Management Act, New Jersey will be poised to take advantage of this increasing demand through the recycling of critical materials and other components.”