A Milestone for Automotive Recyclers—and a Blueprint for the Rest of the Country
With the signing of Senate Bill 26-003 into law on June 4, Colorado has officially enacted a comprehensive framework governing the end-of-life management of electric vehicle (EV) batteries—marking a major milestone for both the automotive recycling industry and the broader EV ecosystem. As battery chemistries change, the economics of recycling are quickly being challenged, exponentially increasing the risk that negative value batteries will become “stranded” or illegally discarded.
This law is the culmination of months of collaboration, negotiation, and advocacy efforts between the Automotive Recyclers Association (ARA), Battery Recyclers, Vehicle Manufacturers, industry associations, and environmental groups. It shows what is possible when industry stakeholders come together in good faith to find consensus on important issues.
Colorado’s law establishes a clear, enforceable system for managing propulsion batteries at end-of-life. At its core, the legislation establishes a non-traditional extended producer responsibility (EPR) model, that leaves in place established markets to handle most batteries while enabling automotive recyclers to send unwanted batteries back to the manufacturer at no cost.
Built on ARA’s Core Principles
“We are very proud to have worked alongside OEMs, battery recyclers, the Colorado Auto Recyclers, several of our associate members, and other stakeholders to advance our core principles on this issue critical to the future of our member businesses,” said ARA Executive Director, Vince Edivan.
The battery management hierarchy developed by ARA and Argonne National Laboratories prioritizes:
• Reuse
• Repair
• Remanufacturing
• Repurposing
• Recycling
For automotive recyclers, this law addresses several long-standing risks that were rapidly emerging with EV adoption. Without a clear system, recyclers risk becoming the default storage site for batteries with no downstream market. This law eliminates any “stranded battery” liability by ensuring defined responsible parties as well as a guaranteed pathway for removal and processing.
The framework also preserves the ability of recyclers to sell batteries into reuse/remanufacturing markets and avoids forced premature recycling by codifying the battery management hierarchy. Critically, recyclers can maintain market-based solutions and only use the stranded battery provisions when there is no other viable alternative.
High-voltage batteries introduce a variety of risks including fire, storage hazards, and worker safety challenges. Colorado’s system addresses these risks by creating structured collection, labeling, and handling requirements, reducing uncontrolled storage and unsafe disposal scenarios.
ARA’s involvement ensured that policymakers understand professional automotive recyclers are the first point of contact for end-of-life vehicles, with existing infrastructure that already handles hundreds of thousands of vehicles annually.
For ARA President, Shannon Nordstrom, the significance of the new Colorado
law is national, offering a solution that can be replicated across the country. Federal agencies and states are actively working toward consistent EPR frameworks for batteries.
“Colorado offers a fully developed EPR framework with definitions of responsibility and measurable outcomes,” said Nordstrom. “This is something I can take to lawmakers in my home state of South Dakota, and our members can take to their lawmakers all over the country and on Capitol Hill.”
By promoting reuse, remanufacturing, repurposing and mineral recovery, the law supports conservation and domestic recovery of lithium, cobalt, and nickel, reducing reliance on new mining and foreign supply chains.
From Advocacy to Action: A Milestone Worth Noting
The foundations for this bill have been in development for nearly two years. Multiple stakeholders have discussed the underlying model from proposals in several states.
Industry associations have hammered out position statements and guidelines to create a functioning ecosystem built on an existing vehicle salvage and recycling infrastructure that has evolved over the last century.
From early coalition drafting and redlines to testimony, hearings, and final passage, this effort has been a sustained, coordinated push from multiple groups. ARA has maintained a seat at the table through the process to ensure that members are represented.
“The bottom line,” said Edivan, “is that Colorado’s new law delivers exactly what the industry has been calling for: clear responsibility, market-based flexibility, protection for auto recyclers, and a model that is scalable nationwide. Most importantly, it proves that when the automotive recycling industry has a seat at the table, the outcome works.”
DID YOU KNOW? ARA OFFERS A LIBRARY OF RESOURCES
The professional automotive recycling industry is continuously evolving to keep pace with the developments in motor vehicle technology and the dynamic automotive parts supply chain. The Automotive Recyclers Association is proud to offer a library of industry standards, resources, and digital documents for professional automotive recycling businesses.
Find Your Resources at www.a-r-a.org/resources
ARA Member Hosts OEMs & Federal Regulators
Recently a diverse group of stakeholders from across the automotive and regulatory landscape gathered for a firsthand look at a modern automotive recycling operation.
Representatives from Toyota, the U.S. Environmental Protection Agency (EPA), the Department of Commerce, the State Department, the Recycled Materials Association (ReMA), and the Alliance for Automotive Innovation were hosted by M&M Auto Parts President and ARA Past President Jonathan Morrow along with Executive Director, Vince Edivan.
The visit to M&M was designed with a clear objective: to demonstrate the complexity, sophistication, and efficiency of today’s professional automotive recyclers—an aspect of the industry that many participants had not previously experienced firsthand.
The group began with a comprehensive tour of M&M’s facility, where they observed the full lifecycle of vehicle processing—from initial intake and dismantling to parts harvesting and resale. The tour highlighted the meticulous processes required to safely and efficiently remove valuable components, as well as the infrastructure and expertise necessary to support a high-functioning recycling operation.
For many attendees, this was their first exposure to the scale and professionalism of an automotive recycling facility. The experience helped dispel common misconceptions and provided a clearer understanding of the role recyclers play in extending vehicle life cycles, supporting affordability for consumers, and contributing to environmental sustainability.
Thank you to the team at M&M for hosting this valuable visit!
ARA Committee Updates
Leadership of the ARA volunteer committees met in early summer for a collaborative quarterly meeting to share news and discuss issues impacting the membership and Association. The group of volunteer leaders spent time discussing recent committee activities such as:
Awareness Committee (Chair: Amber Kendrick): Recent projects include the launch of customizable asset templates for members and ongoing development of a comprehensive keyword glossary for the ARA website.
Interchange Committee (Chair: Emily Yancey): The Committee is discussing electronic parts grading.
Government Affairs (Chair: Slater Shroyer): Recent developments include Colorado and California EPR legislation, and follow-up from May’s successful Hill Days.
Certification Committee (Chair: Shannon Nordstrom): The Committee, in partnership with ARTI, has an ongoing collaboration with Argonne National Labs that will result in new high voltage vehicle training resources for the industry.
Industry Relations (Chair: Shannon Nordstrom): Plans to represent ARA at upcoming industry meetings were outlined, as well as recent interactions with insurance and international buyer groups.
Annual Convention Planning (Natalie Miller): Preparations are well underway for ARA’s 83rd Annual Convention in October. Highlights include new sponsorship visibility and an increased number of educational sessions. Registration is now live on the ARA
website at https://www.a-r-a.org/annual-convention/.
