A recent fire at an Auckland recycling facility has heightened concerns about the lack of clear regulations surrounding the disposal of lithium-ion batteries in New Zealand. Insurance professionals, recyclers, and importers are warning that the increasing use of electric vehicle (EV) batteries is escalating the risk of fires and liability incidents due to inadequate national oversight.
Regulatory Gaps and Industry Concerns
The Imported Motor Vehicle Industry Association (VIA) is pushing for a standardized approach to the reuse and recycling of EV batteries. A VIA report highlighted significant gaps in current practices and the absence of nationally recognized safety protocols. “We’re putting lithium batteries into the community at scale, but we don’t have a clear plan for what happens when they reach the end of their life,” said VIA chief executive Greig Epps.
The report, led by technical lead Malcolm Yorston, described the current operating environment as fragmented. Businesses involved in battery repurposing often rely on international standards from industries like aviation or Korean automotive guidelines, which are not tailored to New Zealand’s specific conditions and lack formal regulatory backing. This inconsistency complicates risk assessments for insurers, leading some to reduce or remove coverage for reused battery systems.
Rising Incidence of Lithium Battery Fires
Data from AMI Insurance released in March 2025 showed a 17% year-on-year increase in lithium-ion battery-related fire claims. More than 50% of these claims involved devices not in active use, highlighting the need for improved safety awareness and risk mitigation. Battery fire claims spanned multiple categories, including motor (27%), contents (25%), home (23%), and commercial (23%) sectors.
Calls for Policy Action
VIA has proposed a three-pronged approach to address these concerns:
- Implement safety standards and a registry system to track battery movement and ownership throughout their lifecycle.
- Define end-of-life ownership to clarify accountability and reduce legal ambiguity.
- Support infrastructure and workforce development through funding for safe storage facilities, handling technologies, and certified training programs.
The association also suggested looking to international models from the European Union and China as potential foundations for local guidelines developed in partnership with industry stakeholders, manufacturers, and insurers.
Proper Disposal Practices
Improper battery disposal has led to an increase in waste collection vehicle fires, according to local councils. Industry experts are advising the public to use designated collection facilities available at hardware retailers and e-waste sites. “Please don’t throw batteries and battery-powered devices in your household waste. There are collection facilities around the country for used batteries, including at most Mitre 10 and Bunnings Warehouse stores, and e-waste services,” said Wayne Tippet, AMI’s executive general manager of claims.
Tom Ronaldson from Fire and Emergency New Zealand emphasized caution when charging or storing battery-powered devices. “To protect your battery, always use the correct charger for the device. If your battery is damaged, or hot to touch while charging, replace it immediately with one from the manufacturer. Always avoid charging devices on soft surfaces or leaving them plugged in for extended periods,” he advised.
The push for better regulation comes as New Zealand sees increased adoption of electric vehicles and growing concerns about the environmental and safety impacts of lithium-ion batteries at the end of their life cycle.
