Battery recycling in the United States (US) automotive industry is undergoing rapid change, driven by evolving technology, shifting policies, and market uncertainty. Brian Bachand, CEO of Westover Auto Salvage, shares insights on how recyclers are adapting to challenges posed by electric vehicles (EVs), hybrids, and internal combustion engine (ICE) vehicles, highlighting resilience, innovation, and the critical role of industry advocacy.
Brian Bachand
Adapting Through Change with Industry Leadership
The Auto Recycling Industry in the United States is no stranger to unique challenges, whether predicted or unforeseen. Its recyclers have revelled in the opportunities that end-of-life vehicles continue to provide. Through the evolution of business models, restructuring of operations, technological innovations and market research, those in the industry have prospered and persevered, or they have perished. But none have gone on without struggle. Adaptability and the ability to accommodate the challenges that come with recycling vehicles in the US have become foundational to those who have stayed current and relevant within these transitional times.
Market uncertainty, unprecedented shifts in consumer opinions and regulatory decisions have compelled recyclers to lean on its champion. The Automotive Recyclers Association (ARA), has led the charge for the industry, representing all recyclers in the fight to remain reliable, resourceful and resilient. Through standardization and advocacy for certification and compliance, the ARA has empowered its members to be agents of change, enabling them to become an integral part of society’s paradigm shift.
The Shift Between ICE, Hybrids, and EVs in a Rapidly Evolving Landscape
The future is now, and the present is yesterday’s news. As we speak, we are laying the cornerstones for a sustainable tomorrow; one that is led by trial and error, for all that we hope is now being tested and questioned by the volley between ICE, Hybrid and EVs. We have come to yet another turning. Whether it be the Fourth Turning or turning the page onto a new chapter of challenges, we are driving ahead full throttle. Across the globe and here in the United States, we are investing significant sums in resources, R&D, AI and Data Analytics.
Stakeholders and legislators are reviewing emissions, vehicle traction battery chemistries and weighing the consequences. And now, even floating the possibility of progressive and potentially problematic regulations on all of the above.
The past, present, and future of ICEs, Hybrids and EVs are all being examined, questioning their validity and volatility. All have their own sets of challenges and best practices, catalysts in a time where the only thing more charged is the political climate we now find ourselves in. So, how has the American Auto Recycler fared thus far? What have been the recyclers’ impressions of the industry landscape that is changing faster than the federal payroll, battery chemistries and the levels of range? To be candid, it is an uphill battle for recyclers, but the fight is ongoing, and the reasons to persevere are in abundance.
The Slow but Steady Rise of EVs and Battery Recycling Practices in Auto Recycling
Politics aside, the Auto Recycling industry has not seen this level of uncertainty since the arrival of NMVTIS, NHTSA and Nader. Best practices for Nickel Metal Hydride, Lithium-ion and LFP, Li-NCA, and Li-NMC Battery recycling in the United States have taken shape and are being implemented. Andy Latham of Salvage Wire has led training and safety efforts for electric vehicle battery recycling. Through collaboration with ARA and ARTI, his expertise has empowered recyclers with vital tools and guidance. Despite progress, challenges remain in addressing the unpredictable aspects of battery recycling’s evolving landscape.
Unlike the Cash for Clunkers endeavor, the American auto recycler started out slowly, being introduced to the EV Trend. Just a few years ago, early model hybrids were often considered unwanted or nearing the end of their life cycle. Recyclers had experience with flagship hybrid models, and during this time, we learned and innovated. So when the market for these types of vehicles began to trend upward, it made the shift towards hybrid and electrification less overwhelming and more organic. Bigger outfitted vehicle recyclers were allowed to educate and evolve, strengthening their operations and business models. Smaller businesses either moved to embrace the change at a slower, experimental pace or were not yet exposed to these types of vehicles or have rejected the shift thus far. Data and Analytics of the market shift progressed steadily over the pastThe data years, during which a few key significant events occurred.
Roughly four years ago, the market and consumer opinion began to increase considerably for Hybrids, notably imports of these types of vehicles. Electric Vehicles were starting to move within the repair and recycling sectors. These EVS, predominantly purchased at insurance auctions but also beginning to flow through the end-of-life process, have now become part of the recycler’s value chain. We started to take, buy and dismantle them. However, the best practices for handling, depolluting, dismantling, storing, and transporting were still in their infancy. Uncertainty accompanied these vehicles in other ways, such as sales data being in short supply, and the markets for parts, cores, and commodities were limited or restrictive in the U.S.
Geographic Disadvantages and Government Mandates: The Double-Edged Sword of Electrification in Auto Recycling
Location played a significant role in the early struggles, especially for those in rural areas or away from hubs and ports. Trying to find markets or outlets to move or make money from these parts and batteries was limited, and even more so for those in the previously stated locales. Recyclers had faced this challenge before with the prelude of the NiMH and Lithium-ion Hybrid batteries, which many recyclers did not have a means or market to recycle. These restrictions, paired with the lack of sufficient interchange, diminished the strength of the compatibility and availability of the used parts. The public’s opinion of the recycling aspect of Hybrid and electric vehicles was marked by uncertainty and ignorance regarding the use of used parts in these types of vehicles and how they were to be handled in the repair and recycling sectors. This adverse feedback left vehicle recyclers with mixed reviews and feelings about these types of vehicles.
The second event took place in the form of a decarbonization initiative. The previous administration created a pledge to achieve Net Zero Emissions by 2030, and in order to make this happen, the EV situation shifted from a trend to a mandate. What started as an organic process, given freedom of trial and error, allowing the markets and opinions of the American people to progress, thrust all of us out of the frying pan and into the fire.
This agenda has left many recyclers fearing similar effects to those seen from the Cash for Clunkers program. Adverse effects of a short-sighted government-funded initiative that did not take into account the auto recycling industry. Under the previous administration, grants were distributed in large quantities to incentivise the electrification process. Government funds were spent to bolster battery manufacturing and its recycling counterparts, paving the road ahead towards combating emissions. The battery industry began to streamline processes in an attempt to keep pace, while legislation rolled out bills and directives that many auto recyclers viewed as rushed, short-sighted, and incomplete. Point Blank, things were moving fast towards this goal without having the full picture in perspective or consideration of the life cycle dynamics of these types of vehicles and batteries.
L-R: Brian Bachand, Hanganh Vo, Senator Warren’s Legislative Correspondent and Tom Andrade, Secretary of the ARA and owner of Everett’s Auto Parts
Advocacy in Action: ARA’s Leadership Amid Legislative Shifts and Industry Upheaval
ARA leadership, its Executive Committee, and, most pivotally, VP of Government Affairs Emil Nusbaum, have fought tirelessly to monitor all proposed bills related to EV, BEV, and Traction Battery Recycling topics. The association has cultivated critical relationships, becoming a proven thought leader in the industry and has aggressively advocated for its role as a must-have advisor to the EV Shift.
With the ARA leading the charge from the pulpit and from on top of the soapbox, auto recyclers have been the ones learning how to navigate the trenches, dealing directly with the other variables that have arisen in the light of this formative period. The mandate to move towards zero emissions caused an uproar in the vehicle recycling community. Legislators were viewed as beginning to make moves to make ICE Vehicles obsolete. Extended Producer Responsibility (EPR) bills have begun to emerge, shifting control of the value chain and liability for automotive and lithium-ion type batteries back to the manufacturers. Many independent repair shops avoided these types of vehicle and battery repairs, directly affecting used parts sales. Things were looking complicated and only becoming more entrenched. And then the 2024 Election came, and the proverbial train was derailed right there and then in November.
Post-Election Realities Reshape the Future of Auto Recycling and Electrification
Since the election, the significant events that led to previous challenges of the former administration pale in comparison to the perceived opportunities and challenges the industry currently faces. The auto recycler went from worrying about mandates, the dissolution of ICE vehicles, and environmental compliance to market uncertainties, tariffs, and the right to repair. Battery recycling, the craze and the credo of the future for the last four years, is now facing its own set of uncertainties.
The current administration has all but given up on the EV trend in favor of alternative solutions and proven methods. Businesses created solely to aid in the supply and value chains of battery manufacturing and recycling find themselves scrambling to secure holdings and alter their business models in the hope of weathering the delay of their green initiative. Some startups have gone ‘belly-up’ while others with significant government capital invested find their grants revoked or their finances frozen. The United States has undergone a complete 180-degree shift in a matter of months, moving from a push towards decarbonization to a daring dance with deregulation. We are seeing a major setback, or perhaps a pause, in the movement towards electrification and battery-based auto mechanics and automation.
The future is a foreign land, but in reflection on the last eight years of politics and the state of affairs in America, I don’t think many are surprised at the boiling point this nation has reached.
How Auto Recyclers Are Tackling Battery Challenges and Bridging the Knowledge Gap
So what is the current state of battery recycling, and how are American auto recyclers addressing it? Truth be told, those in the vehicle recycling industry here in the U.S have always marched to the beat of their own, for better or worse.
Currently, the major in-house challenges that the average auto recycler faces when it comes to battery recycling are securing and implementing best practices. The fire risks of these vehicles and these types of batteries are assessed and alleviated under their own separate and special procedures. They are a greater risk to human health and our operations, and should be treated with adequate awareness and preparation. It is very safe to say that how we safely and professionally depollute and dismantle these types of vehicles is priority number one. How we market potential reuse and core commodities, and properly store and transport them, is just as important to daily operations as it is to our business models.
The auto recycler is also responsible for educating and re-educating the public and legislators about the distinctions between a junkyard and an auto recyclers, as well as the differences among a core buyer, a battery shredder, and an auto recycler.
How and where these types of vehicles are handled and processes, whether they are dismantled and /orrecycled is an absolute mystery to many, including politicians.
Leveraging Industry Stewardship and Market Shifts to Build a Smarter, Sustainable Future
As stewards of the industry, we demonstrate our vitality by showcasing the life cycles and logistics of EVs and their batteries, as well as how we implement ARA’s Heirarchy of Best Use for these batteries. Auto Recyclers are an integral part of the supply chain for battery recycling and will continue to be going forward.
The progression towards lower emissions and the phasing in of EVs may have been delayed, but the consumer choice and market shifts suggest otherwise. The United States may be at an impasse in keeping pace with the global goal of decarbonization; however, many auto recyclers may see this as a necessary deceleration or even as an opportunity. The delay can be viewed as a breather that the industry can afford in order to let the process continue to trend organically as it started. This time period can facilitate more comprehensive data analysis and sales history review across the board, enabling further innovation. Best management practices can be established and implemented, paving the way for the trial-and-error methods that vehicle recycling has thrived on. Opportunities to grow demand and capitalise on supply challenges may create market tailwinds, contrasting with inevitable headwinds in other markets due to tariffs and economic uncertainties.
Resilience in Uncertainty: The Unshakable Resolve of the American Auto Recycler
The state of the United States’ vehicle and battery recycling industries is currently complicated, to say the very least. As the author of The 7 Habits of Highly Effective People, Stephen Covey has said: “If there’s one thing that is certain in business, it’s uncertainty”. And although the current uncertainty may be unsettling and the political climate inexplicably unpredictable, the resolve of the American Recycler remains unyielding and unbreakable.
Come what may, the industry will endure and evolve by adapting and accommodating the challenges of tomorrow. Those who stand stubborn or susceptible will find themselves on the wrong side of the ledger and history books.
Recharged and Resilient: A Recycler’s View on Auto Battery Recycling in the US
Battery recycling in the United States (US) automotive industry is undergoing rapid change, driven by evolving technology, shifting policies, and market uncertainty. Brian Bachand, CEO of Westover Auto Salvage, shares insights on how recyclers are adapting to challenges posed by electric vehicles (EVs), hybrids, and internal combustion engine (ICE) vehicles, highlighting resilience, innovation, and the critical role of industry advocacy.
Adapting Through Change with Industry Leadership
The Auto Recycling Industry in the United States is no stranger to unique challenges, whether predicted or unforeseen. Its recyclers have revelled in the opportunities that end-of-life vehicles continue to provide. Through the evolution of business models, restructuring of operations, technological innovations and market research, those in the industry have prospered and persevered, or they have perished. But none have gone on without struggle. Adaptability and the ability to accommodate the challenges that come with recycling vehicles in the US have become foundational to those who have stayed current and relevant within these transitional times.
Market uncertainty, unprecedented shifts in consumer opinions and regulatory decisions have compelled recyclers to lean on its champion. The Automotive Recyclers Association (ARA), has led the charge for the industry, representing all recyclers in the fight to remain reliable, resourceful and resilient. Through standardization and advocacy for certification and compliance, the ARA has empowered its members to be agents of change, enabling them to become an integral part of society’s paradigm shift.
The Shift Between ICE, Hybrids, and EVs in a Rapidly Evolving Landscape
The future is now, and the present is yesterday’s news. As we speak, we are laying the cornerstones for a sustainable tomorrow; one that is led by trial and error, for all that we hope is now being tested and questioned by the volley between ICE, Hybrid and EVs. We have come to yet another turning. Whether it be the Fourth Turning or turning the page onto a new chapter of challenges, we are driving ahead full throttle. Across the globe and here in the United States, we are investing significant sums in resources, R&D, AI and Data Analytics.
Stakeholders and legislators are reviewing emissions, vehicle traction battery chemistries and weighing the consequences. And now, even floating the possibility of progressive and potentially problematic regulations on all of the above.
The past, present, and future of ICEs, Hybrids and EVs are all being examined, questioning their validity and volatility. All have their own sets of challenges and best practices, catalysts in a time where the only thing more charged is the political climate we now find ourselves in. So, how has the American Auto Recycler fared thus far? What have been the recyclers’ impressions of the industry landscape that is changing faster than the federal payroll, battery chemistries and the levels of range? To be candid, it is an uphill battle for recyclers, but the fight is ongoing, and the reasons to persevere are in abundance.
The Slow but Steady Rise of EVs and Battery Recycling Practices in Auto Recycling
Politics aside, the Auto Recycling industry has not seen this level of uncertainty since the arrival of NMVTIS, NHTSA and Nader. Best practices for Nickel Metal Hydride, Lithium-ion and LFP, Li-NCA, and Li-NMC Battery recycling in the United States have taken shape and are being implemented. Andy Latham of Salvage Wire has led training and safety efforts for electric vehicle battery recycling. Through collaboration with ARA and ARTI, his expertise has empowered recyclers with vital tools and guidance. Despite progress, challenges remain in addressing the unpredictable aspects of battery recycling’s evolving landscape.
Unlike the Cash for Clunkers endeavor, the American auto recycler started out slowly, being introduced to the EV Trend. Just a few years ago, early model hybrids were often considered unwanted or nearing the end of their life cycle. Recyclers had experience with flagship hybrid models, and during this time, we learned and innovated. So when the market for these types of vehicles began to trend upward, it made the shift towards hybrid and electrification less overwhelming and more organic. Bigger outfitted vehicle recyclers were allowed to educate and evolve, strengthening their operations and business models. Smaller businesses either moved to embrace the change at a slower, experimental pace or were not yet exposed to these types of vehicles or have rejected the shift thus far. Data and Analytics of the market shift progressed steadily over the pastThe data years, during which a few key significant events occurred.
Roughly four years ago, the market and consumer opinion began to increase considerably for Hybrids, notably imports of these types of vehicles. Electric Vehicles were starting to move within the repair and recycling sectors. These EVS, predominantly purchased at insurance auctions but also beginning to flow through the end-of-life process, have now become part of the recycler’s value chain. We started to take, buy and dismantle them. However, the best practices for handling, depolluting, dismantling, storing, and transporting were still in their infancy. Uncertainty accompanied these vehicles in other ways, such as sales data being in short supply, and the markets for parts, cores, and commodities were limited or restrictive in the U.S.
Geographic Disadvantages and Government Mandates: The Double-Edged Sword of Electrification in Auto Recycling
Location played a significant role in the early struggles, especially for those in rural areas or away from hubs and ports. Trying to find markets or outlets to move or make money from these parts and batteries was limited, and even more so for those in the previously stated locales. Recyclers had faced this challenge before with the prelude of the NiMH and Lithium-ion Hybrid batteries, which many recyclers did not have a means or market to recycle. These restrictions, paired with the lack of sufficient interchange, diminished the strength of the compatibility and availability of the used parts. The public’s opinion of the recycling aspect of Hybrid and electric vehicles was marked by uncertainty and ignorance regarding the use of used parts in these types of vehicles and how they were to be handled in the repair and recycling sectors. This adverse feedback left vehicle recyclers with mixed reviews and feelings about these types of vehicles.
The second event took place in the form of a decarbonization initiative. The previous administration created a pledge to achieve Net Zero Emissions by 2030, and in order to make this happen, the EV situation shifted from a trend to a mandate. What started as an organic process, given freedom of trial and error, allowing the markets and opinions of the American people to progress, thrust all of us out of the frying pan and into the fire.
This agenda has left many recyclers fearing similar effects to those seen from the Cash for Clunkers program. Adverse effects of a short-sighted government-funded initiative that did not take into account the auto recycling industry. Under the previous administration, grants were distributed in large quantities to incentivise the electrification process. Government funds were spent to bolster battery manufacturing and its recycling counterparts, paving the road ahead towards combating emissions. The battery industry began to streamline processes in an attempt to keep pace, while legislation rolled out bills and directives that many auto recyclers viewed as rushed, short-sighted, and incomplete. Point Blank, things were moving fast towards this goal without having the full picture in perspective or consideration of the life cycle dynamics of these types of vehicles and batteries.
Hanganh Vo, Senator Warren’s Legislative Correspondent and Tom Andrade, Secretary of the ARA and owner of Everett’s Auto Parts
Advocacy in Action: ARA’s Leadership Amid Legislative Shifts and Industry Upheaval
ARA leadership, its Executive Committee, and, most pivotally, VP of Government Affairs Emil Nusbaum, have fought tirelessly to monitor all proposed bills related to EV, BEV, and Traction Battery Recycling topics. The association has cultivated critical relationships, becoming a proven thought leader in the industry and has aggressively advocated for its role as a must-have advisor to the EV Shift.
With the ARA leading the charge from the pulpit and from on top of the soapbox, auto recyclers have been the ones learning how to navigate the trenches, dealing directly with the other variables that have arisen in the light of this formative period. The mandate to move towards zero emissions caused an uproar in the vehicle recycling community. Legislators were viewed as beginning to make moves to make ICE Vehicles obsolete. Extended Producer Responsibility (EPR) bills have begun to emerge, shifting control of the value chain and liability for automotive and lithium-ion type batteries back to the manufacturers. Many independent repair shops avoided these types of vehicle and battery repairs, directly affecting used parts sales. Things were looking complicated and only becoming more entrenched. And then the 2024 Election came, and the proverbial train was derailed right there and then in November.
Post-Election Realities Reshape the Future of Auto Recycling and Electrification
Since the election, the significant events that led to previous challenges of the former administration pale in comparison to the perceived opportunities and challenges the industry currently faces. The auto recycler went from worrying about mandates, the dissolution of ICE vehicles, and environmental compliance to market uncertainties, tariffs, and the right to repair. Battery recycling, the craze and the credo of the future for the last four years, is now facing its own set of uncertainties.
The current administration has all but given up on the EV trend in favor of alternative solutions and proven methods. Businesses created solely to aid in the supply and value chains of battery manufacturing and recycling find themselves scrambling to secure holdings and alter their business models in the hope of weathering the delay of their green initiative. Some startups have gone ‘belly-up’ while others with significant government capital invested find their grants revoked or their finances frozen. The United States has undergone a complete 180-degree shift in a matter of months, moving from a push towards decarbonization to a daring dance with deregulation. We are seeing a major setback, or perhaps a pause, in the movement towards electrification and battery-based auto mechanics and automation.
The future is a foreign land, but in reflection on the last eight years of politics and the state of affairs in America, I don’t think many are surprised at the boiling point this nation has reached.
How Auto Recyclers Are Tackling Battery Challenges and Bridging the Knowledge Gap
So what is the current state of battery recycling, and how are American auto recyclers addressing it? Truth be told, those in the vehicle recycling industry here in the U.S have always marched to the beat of their own, for better or worse.
Currently, the major in-house challenges that the average auto recycler faces when it comes to battery recycling are securing and implementing best practices. The fire risks of these vehicles and these types of batteries are assessed and alleviated under their own separate and special procedures. They are a greater risk to human health and our operations, and should be treated with adequate awareness and preparation. It is very safe to say that how we safely and professionally depollute and dismantle these types of vehicles is priority number one. How we market potential reuse and core commodities, and properly store and transport them, is just as important to daily operations as it is to our business models.
The auto recycler is also responsible for educating and re-educating the public and legislators about the distinctions between a junkyard and an auto recyclers, as well as the differences among a core buyer, a battery shredder, and an auto recycler.
How and where these types of vehicles are handled and processes, whether they are dismantled and /orrecycled is an absolute mystery to many, including politicians.
Leveraging Industry Stewardship and Market Shifts to Build a Smarter, Sustainable Future
As stewards of the industry, we demonstrate our vitality by showcasing the life cycles and logistics of EVs and their batteries, as well as how we implement ARA’s Heirarchy of Best Use for these batteries. Auto Recyclers are an integral part of the supply chain for battery recycling and will continue to be going forward.
The progression towards lower emissions and the phasing in of EVs may have been delayed, but the consumer choice and market shifts suggest otherwise. The United States may be at an impasse in keeping pace with the global goal of decarbonization; however, many auto recyclers may see this as a necessary deceleration or even as an opportunity. The delay can be viewed as a breather that the industry can afford in order to let the process continue to trend organically as it started. This time period can facilitate more comprehensive data analysis and sales history review across the board, enabling further innovation. Best management practices can be established and implemented, paving the way for the trial-and-error methods that vehicle recycling has thrived on. Opportunities to grow demand and capitalise on supply challenges may create market tailwinds, contrasting with inevitable headwinds in other markets due to tariffs and economic uncertainties.
Resilience in Uncertainty: The Unshakable Resolve of the American Auto Recycler
The state of the United States’ vehicle and battery recycling industries is currently complicated, to say the very least. As the author of The 7 Habits of Highly Effective People, Stephen Covey has said: “If there’s one thing that is certain in business, it’s uncertainty”. And although the current uncertainty may be unsettling and the political climate inexplicably unpredictable, the resolve of the American Recycler remains unyielding and unbreakable.
Come what may, the industry will endure and evolve by adapting and accommodating the challenges of tomorrow. Those who stand stubborn or susceptible will find themselves on the wrong side of the ledger and history books.
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