U.S. EPA Memo Offers Direction on Lithium Battery Recycling—Essential to the Future Supply Chain for Battery Electric Vehicles

Lithium-ion batteries are commonly used in a wide variety of applications, from medical devices to laptops — and now, increasingly, in electric vehicles (EVs). With the market for personal and commercial EVs growing, it is essential for U.S. manufacturers to have a secure, reliable supply chain of the critical minerals needed to produce EV batteries, including lithium, cobalt, nickel, and copper. Indeed, a recent study highlights the growing demand for these minerals — and the challenges the U.S. faces to meet this demand from mined sources.

To help meet this growing demand, recycling lithium-ion EV batteries to access and reuse these essential minerals will be a necessary piece of a reliable domestic supply. To date, however, no federal or state laws mandate EV battery recycling. Nor was there federal guidance that expressly advised how regulators would treat recycled batteries under existing law. To begin to address that gap, on May 24, 2023, the Environmental Protection Agency (EPA) released a memo and related FAQs addressing the status of lithium-ion batteries under the Resource Conservation and Recovery Act (RCRA). In this guidance, EPA did not break new ground but did explain how it interprets current hazardous waste rules to regulate lithium-ion batteries, concluding that “most lithium-ion batteries are likely hazardous waste at end of life and that they can be managed under the … universal waste” standards until they reach a destination facility. Here are five takeaways from EPA’s action:

EPA has provided some measure of guidance on battery recycling, but stakeholders should stay tuned for future actions at the federal and state levels.

This post is as of the posting date stated above. Sidley Austin LLP assumes no duty to update this post or post about any subsequent developments having a bearing on this post.

Washington, D.C.

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Washington, D.C.

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