Both manufacturers and consumers need to pay attention to changing lithium-ion battery regulations. Several changes are coming that will determine how batteries or the products they’re in are shipped.

One of the biggest involves new International Air Transport Association (IATA) rules on shipping lithium-ion batteries in or with devices or vehicles. As of January 1, 2026, there’s a maximum State of Charge requirement of 30% for shipping any equipment batteries over 2.7 Wh or vehicle batteries over 100 Wh. Shipping these batteries with higher charges is only allowed with written approval.

The goal is to lower the risk of fire during transportation. Lower charges reduce the risk of thermal runaways that increase the chances of fire. How items reach you is part of the picture. You must also properly handle items at the end of their life. Tossing them into the trash isn’t acceptable. Recycling properly is key.

80% Threshold Goal for 2026

A lithium-ion battery consists of five main components.

• Negative Electrode (Anode): Stores lithium ions when a battery is charged.
• Positive Electrode (Cathode): Releases lithium ions during battery discharge.
• Electrolyte: Fluid lithium salts that allow lithium ions to move from the anode to the cathode and back.
• Separator: A porous film that separates the anode and cathode while allowing lithium ions to pass.
• Current Collectors: Thin aluminum (cathode) or copper (anode) foils that conduct electrons from the battery terminal to power the device.

A lithium-ion battery contains:

• Aluminum or copper – current collectors
• Cobalt, manganese, or nickel – cathodes
• Graphite – ion storage in the anode
• Lithium – forms the ions that carry energy

If you take one lithium-ion EV battery, about 10 to 15% of its total weight is copper. Aluminum makes up about 15%. Cobalt (4 to 10%), manganese (5 to 10%), and nickel (10 to 15%) make up a lot of the battery by weight. Graphite is the most significant component, at upwards of 30%. Lithium is the least abundant component at no more than 2%.

That may not seem like a lot, but if you consider that about 500,000 tons of EV battery waste was generated in 2019, you see how much material is mined or processed to power phones, cars, laptops, and other rechargeable devices. The reuse of these valuable materials is essential to prevent overmining and to avoid running out of raw materials.

The Inflation Reduction Act is in its final transition year. The batteries in EVs placed in service must contain at least 70% of critical minerals extracted, recycled, or processed in North America. That requirement increases to 80% after December 31, 2026. 

It takes time for automotive manufacturers to source batteries, so these businesses can’t afford to waste time. They need to secure batteries that meet the 80% requirement for the 2027 EV models.

EU battery regulations differ. Recycling efficiency must be at least 65%, and lithium recovery rates must reach 80% by the end of 2029. This places pressure on global manufacturers. They need high-purity materials when recovering materials from batteries. It’s challenging to reach the target using popular recycling methods.

The Shift From Pyrometallurgy to Hydrometallurgy

Battery recycling used to focus heavily on pyrometallurgy, a fire-based process. Batteries were fed into furnaces that burned materials at extremely high temperatures, often well over 2,500ºF. This process excelled at recovering cobalt and nickel, but some aluminum and lithium often ended up in waste matter. 

Pyrometallurgy creates greenhouse emissions. It also uses a lot of energy when processing batteries. Estimates are that 80% of lithium is typically captured after pyrometallurgy, though rates vary.

Hydrometallurgy uses water. Batteries are dissolved in a chemical bath at temperatures of 140º to 194ºF. Once dissolved, a process called selective precipitation separates the aluminum, cobalt, lithium, and nickel. Selective precipitation uses chemical solutions, such as hydroxide ions, to bond to the materials.

Because temperatures are much lower, there’s far less energy consumption. There are also fewer emissions. Because you select what’s recovered, you recover the aluminum and lithium that pyrometallurgy often loses in waste. Up to 90% of the lithium recycled often remains after processing.

Changing Lithium-Ion Battery Disposal Laws Across the U.S.

Many states have adopted Extended Producer Responsibility (EPR) laws that require lithium-ion recycling. These states include California, Illinois, New Jersey, New York, Vermont, and Washington. 

The EPA also set the Rechargeable Battery Recycling Act, which requires the recycling of Lithium-ion batteries classified as hazardous waste. New RCRA laws are slated for release in 2026 or 2027. These new laws intend to:

• Set a new waste category for lithium batteries.
• Create new requirements for transportation, handling, labeling, and storage to reduce fire risk.
• Promote recovery of minerals to support clean energy.
• Require companies that manage, produce, or recycle lithium-ion batteries to change their business operations accordingly.
• Adds solar panels and solar equipment to universal waste.

The laws are expected to be finalized in 2026. This means they’ll be effective for the start of 2027. Everyone should prepare to recycle all batteries as the first step to supporting the circular economy.

Recycle and Support the Circular Economy

Whether you’re a business owner or a consumer, responsible recycling of all lithium-ion batteries is essential. These batteries power everything from laptops and tablets to cellphones and EVs. They’re also found in e-readers, rechargeable flashlights, power tools, cameras, and a variety of pets and children’s toys. 

Nothing with a removable or built-in battery should ever be thrown in the landfill. Recycle lithium-ion batteries and rechargeable devices at any location that offers electronics recycling. 

Retailers such as Best Buy, Goodwill, and Staples often accept a limited number of consumer electronic devices each day. Consumers can bring them to their local recycling facility. Recycle Nation helps you find the nearest place to bring your recycled electronics.

Business owners need to make alternative plans because most recycling services limit how much businesses can drop off for recycling. Find companies like ERI that support businesses with secure, responsible e-recycling services. 

You want an ITAD provider who offers services like coming to your place of business to destroy data and help with data center decommissioning, to sending a box or pallet you can fill with used electronics and send to your nearest electronics recycling facility.

Another aspect of a circular economy is purchasing goods that use recycled materials. Support manufacturers that use recovered lithium and other metals. Recycling these materials is good, but buying items made with recycled materials completes the circle and makes battery recycling a viable service.