First State Law Targets Propulsion Batteries

Colorado has signed SB 26-003 into law, expanding the state's Battery Stewardship Act to cover electric and hybrid vehicle propulsion batteries. The law makes propulsion-battery providers responsible for collecting unwanted batteries and ensuring they are reused, repurposed, or recycled.

The bill is aimed at a problem that will get larger as EVs age out of service. Propulsion batteries can retain value after their first vehicle life, but they also create fire, storage, and disposal risks when the handoff between fleets, dismantlers, recyclers, and manufacturers is unclear.

Deadlines Start Before the Waste Wave

Providers that sell or distribute propulsion batteries or vehicles containing them in Colorado must register with the state by July 1, 2027. They must submit education and outreach plans by January 2, 2029, and by July 1, 2029 cannot continue selling covered batteries in the state without a qualifying plan.

Colorado also set material recovery targets. Reporting on the bill says recyclers must recover 90% of cobalt and nickel and 50% of lithium by 2031, with lithium recovery rising to 80% by 2035.

Why Fleets Should Care

For fleet operators, the law matters less as a Colorado-only rule than as a signal. As electric vans, pickups, and trucks age, end-of-life handling will become part of total cost of ownership. Clearer rules could make disposal safer and more predictable, but they also add another compliance item for fleets buying, selling, or retiring EV assets.

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