Colorado Law Requires EV Makers to Recycle Unwanted Batteries, Backed by Recyclers and Automakers

Colorado passed a law this summer that requires electric vehicle manufacturers to take responsibility for recycling unwanted EV batteries sold in the state. The measure sets recovery targets for battery minerals and serves as a backstop if batteries are abandoned at landfills or salvage yards. NPR reported that the law emerged from economic difficulties facing vehicle recyclers.

On a sweltering morning in early July 2026, Thomas Andrade, co-owner of Everett Auto Parts in Brockton, Massachusetts, supervised workers strapping two Chevy Volt hybrid batteries to a pallet for shipment. A recycler accepted the batteries at no cost. Brian Bachand, CEO of Westover Salvage Yard, has a Tesla battery priced at $1,200 that has not sold.

The only recycler quote he received required him to pay $1,800 to cover shipping and processing. Bundling five similar batteries might allow acceptance at no cost, Bachand said. Most EV batteries recycled in the U.S.

Are currently factory scrap rather than end-of-life units from vehicles, according to Benchmark Mineral Intelligence data. EV batteries can weigh a ton or more. For some batteries with higher-value minerals, recyclers pay $2 or more per kilogram for scrap.

David Klanecky, CEO of Cirba Solutions, stated there is no value in recycling iron phosphate batteries. For those units, the company charges both the supplier and the mineral buyer. Frederick Bloomfield, an analyst at Benchmark Mineral Intelligence, said the current gate fee for LFP battery scrap in North America is $1.50 to $2 per kilogram.

J.B. Straubel, founder and CEO of Redwood Materials, stated that battery recycling is becoming more economical each month. Andy Oury, a battery engineer at GM, stated that recycling scrap batteries is now a source of revenue for GM rather than an expense.