New Jersey has set a significant precedent by becoming the first state to require the recycling of electric vehicle (EV) batteries. This new legislation, which will come into effect in January 2027, places the responsibility for EV battery recycling primarily on the manufacturers of these batteries.
Setting the Standard: The Electric and Hybrid Vehicle Management Act, passed by New Jersey on January 8, makes it illegal to dispose of EV batteries in landfills and instead mandates their reuse and recycling. The Act also requires EV battery producers to register with the New Jersey Department of Environmental Protection (DEP) starting January 2025 and to report the quantity of EV batteries they sell in the state by January 2026.
The DEP will then provide the industry with a framework of standards and criteria for the entire recycling process. Once this framework is finalized, each battery producer must develop a written management plan that includes take-back programs for used EV batteries sold within the state. These programs may include a complete vehicle take-back program, a battery take-back program, or any other DEP-approved program.
Producers are required to fund their management plans, and all entities authorized to manage used EV batteries as part of a producer’s management plan are required to do so according to the approved plan.
Industry Impact: The influx of EV sales without federal regulations to address EV battery disposal has been a growing concern. In 2023, over 1.4 million EVs were sold in the United States, reflecting a remarkable 50% increase within a year. New Jersey ranked among the top three states for EV adoption in 2023, with an EV share of retail vehicle sales at 10.3%, higher than the national average.
According to a report by Cox Automotive, New Jersey’s EV adoption came after California and Washington, solidifying its position as a high-growth market for electric vehicles.
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