A major fire at a recycling facility on Auckland’s North Shore has renewed concerns about the regulatory vacuum surrounding the end-of-life management of lithium-ion batteries in New Zealand.
Insurance professionals, recyclers, and importers are warning that as the use of electric vehicle (EV) batteries increases, so too does the potential for fire and liability incidents without clear national oversight.
The Imported Motor Vehicle Industry Association (VIA) is urging the government to implement a standardised approach to the reuse and recycling of EV batteries.
A recent report from VIA outlined gaps in current practices and the absence of nationally recognised 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 VIA report, led by technical lead Malcolm Yorston, described a fragmented operating environment.
Businesses engaged in battery repurposing often rely on international standards from industries such as aviation or Korean automotive guidelines. However, these are not tailored to New Zealand’s specific conditions and lack formal regulatory support.
Inconsistencies in battery type, restricted access to diagnostic tools, and unclear supply chain responsibilities have complicated risk assessments for insurers.
As a result, some providers have already reduced or removed coverage for reused battery systems in residential and commercial installations.
Although some collaboration exists within the sector, including between refurbishers and accredited recyclers, the report confirmed that New Zealand does not yet have the capacity to extract lithium and related critical minerals at scale.
AMI Insurance data, 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 that were not actively in use, underscoring the need for increased safety awareness and risk mitigation.
The insurer reported that battery fire claims spanned multiple categories, including motor (27%), contents (25%), home (23%), and commercial (23%). Marine-related incidents accounted for a small percentage.
VIA has outlined a three-pronged approach to address the growing concerns:
The association also highlighted international models from the European Union and China as potential foundations for co-developed local guidelines in partnership with industry stakeholders, manufacturers, and insurers.
Improper battery disposal has also led to an uptick in waste collection vehicle fires, according to local councils.
Wayne Tippet, AMI’s executive general manager of claims, recommended using designated collection facilities available at hardware retailers and e-waste sites across the country.
“Please don’t throw batteries and battery-powered devices in your household waste. There are a number of collection facilities around the country for used batteries, including at most Mitre 10 and Bunnings Warehouse stores, and e-waste services or recycling services for electronics,” he said.
Tom Ronaldson, community education manager at Fire and Emergency New Zealand, advised 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 said.
