Colorado Signs EV Battery Recycling Law, Targeting 90% Cobalt and Nickel Recovery by 2031
2026-06-12 12:01
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en.Wedoany.com Reported - Colorado has signed into law a bill regulating the end-of-life management of propulsion batteries for electric and hybrid vehicles, which could serve as a model for nationwide battery recycling legislation. The law, titled Senate Bill 26-003, was signed by Governor Jared Polis on June 4, expanding the state's existing Battery Stewardship Act (S.B. 25-163), which established an extended producer responsibility (EPR) framework for small and medium-sized batteries.

The new law sets different management requirements for large batteries compared to small and medium-sized ones. Notable provisions include a landfill ban on propulsion batteries effective July 1, 2029, additional details on battery record-keeping methods, and the establishment of critical mineral recovery targets—a first in the United States. The bill received bipartisan support from state lawmakers.

Multiple industry organizations participated in consultations during the bill's development. Danielle Spalding, Senior Vice President of Corporate and External Affairs at Cirba Solutions, a battery recycler headquartered in Charlotte, North Carolina, described this as a "breakthrough opportunity" for the battery recycling industry, noting high levels of cross-sector collaboration across the supply chain in achieving the final goals. Spalding told Recycling Today: "In developing this bill, I have never seen the entire supply chain collaborate as it did this time. From bill sponsors, industry, front-end producers to automotive recyclers and reusers, all were well represented."

In addition to battery recyclers like Cirba Solutions and Redwood Materials of Carson City, Nevada, automakers, battery manufacturers, and industry associations such as the Automotive Recyclers Association (ARA) also participated in the consultation. In a press release, ARA noted that approximately 330,000 vehicles reach end-of-life in Colorado each year, with automotive recycling facilities handling the majority. As the number of vehicles containing high-voltage batteries reaching end-of-life increases, automotive recyclers become the first point of contact for these batteries. Emil Nusbaum, Vice President of Strategy, Government, and Regulatory Affairs at ARA, stated that the bill helps ensure that existing end-of-life vehicle recycling infrastructure can continue to benefit vehicle owners and the environment.

Under the bill's framework, starting July 1, 2027, companies selling or distributing propulsion batteries or vehicles containing such batteries in the state must register with the Colorado Department of Public Health and Environment (CDPHE). By January 2, 2029, battery suppliers must submit education and outreach plans, and by July 1 of that year, create a website containing relevant information, or face a ban on selling or distributing batteries in the state. The law requires suppliers to collect certain unwanted batteries and ensure their responsible management, with labeling requirements and specific label content mandated from July 1, 2029. Beginning June 1, 2030, battery producers must submit annual reports to CDPHE detailing the management of collected batteries, including recycling processes and mineral recovery rates.

Spalding noted that a key difference between S.B. 26-003 and other EPR frameworks is that it does not require the establishment of a producer responsibility organization (PRO) or battery stewardship organization (BSO) to oversee the program. She stated that large batteries have established processing pathways, with material flows distinctly different from small and medium-sized batteries, and businesses typically handle large batteries rather than individual consumers. Daniel Zotos, Director of State Policy and Public Affairs at Redwood Materials, emphasized that the law clarifies the definition of a recycler, requiring operators that actually extract, separate, or refine materials to return them to a usable form to qualify, while operators engaged solely in collection and transportation are not recognized.

The law sets clear recovery targets for critical minerals. By 2031, minimum recovery rates must reach 90% for cobalt and nickel, and 50% for lithium. By 2035, recovery rates for cobalt and nickel remain at 90%, while lithium's rate jumps to 80%. Zotos stated that setting separate recovery rates prevents operators from meeting targets by recovering heavy metals while losing lithium. Spalding believes that implementing these recovery rates will drive the battery recycling industry forward.

The bill also considers future battery chemistry developments, aiming to support the current battery management hierarchy while maintaining flexibility. Spalding noted that when setting targets, they should be applicable not only to nickel, manganese, and cobalt but also to other technologies like lithium iron phosphate or sodium-ion. Zotos pointed out that the core value of the bill's framework lies in ensuring that critical minerals are actually recovered rather than lost, and that batteries are reused as much as possible before entering recycling, which directly supports domestic energy storage deployment and extends the productive life of assets.

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