On June 4, 2026, Colorado quietly made national history, becoming the first state to spell out exactly what happens to electric vehicle batteries once they stop powering cars. Instead of letting high-voltage propulsion batteries drift into the general scrap stream, the new law puts the responsibility squarely on automakers and battery makers, who must collect, label, reuse and recycle those packs. Backers say the point is to head off dangerous stockpiles and battery fires, capture valuable materials and build up in-state recycling capacity.
What the law requires
Senate Bill 26-003, officially the "Promoting Responsible End-of-Life Management of Electric Vehicle Batteries Act," expands Colorado's existing Battery Stewardship Act to cover propulsion batteries, according to the Colorado General Assembly. The measure tells propulsion battery providers to register with the Department of Public Health and Environment by July 1, 2027, and to file education and outreach plans by January 2, 2029.
Starting July 1, 2029, propulsion batteries cannot be dumped at solid-waste facilities under the statute. The law also sets program initiation and annual fees to fund implementation, with the intent of giving the state a dedicated pot of money to run the system.
Recovery targets and standards
The law does not just say "recycle" and walk away. It sets specific recovery targets for critical minerals: recyclers must recover 90 percent of cobalt and nickel and 50 percent of lithium by 2031, with lithium recovery increasing to 80 percent by 2035, EVinfo.net reported.
Those recovery rates are measured on a facility-level mass-balance basis and are meant to nudge recyclers toward turning used batteries into usable metals and compounds instead of low-value waste streams that are harder to put back into the supply chain.
Industry response
Automotive recyclers, environmental groups and some manufacturers were at the table as the bill took shape, and many offered cautious praise once it cleared the legislature. The Automotive Recyclers Association described SB26-003 as a market-based framework that protects workers and keeps batteries out of landfills, noting that Colorado already sees roughly 330,000 vehicles reach end-of-life each year.
Supporters argue the new rules give recyclers firmer ground to plan on and outline a path toward a more circular battery economy, where materials keep cycling through rather than ending up as waste.
How it will be enforced and paid for
The Department of Public Health and Environment now holds the keys to the program. It will implement, administer and enforce the law and must publish aggregated reporting data along with a list of registrants, according to the bill text posted by the Colorado General Assembly.
The statute directs the solid and hazardous waste commission to set annual fees by July 1, 2029. It also lets the department assess a $1,000 collection charge in situations where secondary handlers need frequent pickups. Those fees are intended to cover the department's administrative costs without blowing past the funding caps spelled out in the law.
What this means for Colorado businesses and drivers
For salvage yards, transfer stations and auto repair shops, the shift is meant to bring clearer pickup rules and a no-cost collection option for unwanted propulsion batteries. Manufacturers, not secondary handlers, will be the ones responsible for taking those packs off their hands, EVinfo.net reports.
Advocates say new processing capacity could translate into local jobs and stronger supply chains. Critics warn that compliance costs and fees could eventually show up in vehicle prices and the used-car market, even as the law tries to balance environmental safeguards with economic reality.
Colorado's measure pulls labeling rules, collection logistics, recovery quotas and enforcement tools into a single statute that trade outlets and recycling groups describe as among the most specific in the country. As Charged EVs and other industry observers note, the law could serve as a template for states now staring down a coming wave of retired EV batteries.
