Formalising the Informal Battery Scrap Channel

In many markets, informal scrap dealers have long handled lead-acid batteries and other waste, and they are now encountering lithium-ion batteries too. They offer convenience and immediate cash payment, often at the doorstep, which formal channels have struggled to match. That reach is a real strength.

The risks are also real. Manual breaking of lithium-ion cells can cause fires, toxic exposure and contamination, and informal processes typically recover only easily separated materials. For producers, batteries lost to informal channels are batteries that cannot support EPR obligations or recycled content goals.

Formalisation works best when it builds on existing networks. Informal collectors can be registered as aggregators, trained in safe handling and supplied with appropriate packaging. In return, they receive transparent pricing, reliable collection from their premises and prompt payment, which removes the incentive to dismantle batteries themselves.

Digital tools help. Simple apps can record serial numbers, photographs and weights at collection, generate receipts and trigger payments. That data creates traceability from the collector to the recycler and supports certificate generation for producers.

Producers can support formalisation by funding collection incentives, publishing return options clearly and working with recyclers who operate collector programmes. Deposit or buy-back schemes at the point of sale can also encourage owners to return batteries through formal routes.

Measuring progress matters. Tracking the share of batteries sold that return through registered channels shows whether interventions are working and provides evidence for regulators and stakeholders.