Illinois Mandates Battery Recycling Scheme

From 2026, producers of covered portable and medium-format batteries must fund recycling programs in Illinois

12 Feb 2026

Illinois will require companies selling certain portable and medium-format batteries to finance and manage recycling programmes from January 1, 2026, shifting the cost of collection away from local authorities and towards producers.

Under the new law, manufacturers must join or establish state-approved stewardship organisations responsible for organising drop-off locations, arranging transport and ensuring proper processing of used batteries. Covered batteries will no longer be accepted in standard curbside recycling schemes, a move intended to reduce fire risks linked to lithium-ion products widely used in consumer electronics and some medium-scale applications.

Producers will be required to register with the state, report sales and performance data, and contribute to funding a statewide collection network. Retailers, in turn, may sell only batteries supplied by compliant producers, adding a new layer of oversight to procurement and vendor management.

The measure does not extend to electric vehicle traction batteries under current definitions. However, it reflects a broader shift in US policy towards extended producer responsibility, under which manufacturers finance the end-of-life management of their products. Several states have introduced or are considering similar frameworks, largely focused on household and medium-format batteries.

For companies operating across multiple jurisdictions, the expansion of state-level rules increases the need for harmonised compliance systems. Varying reporting standards and programme requirements may add administrative costs, particularly for smaller producers with limited internal resources.

Recycling and materials recovery groups could benefit from a more predictable flow of used batteries. A structured collection system may support investment in processing capacity and strengthen domestic supply chains for recovered materials such as lithium, cobalt and nickel.

Industry groups have raised concerns about the financial and operational burden of the new regime, especially for smaller manufacturers. Supporters argue that clearer accountability and coordinated stewardship will improve safety and environmental outcomes.

Illinois joins a growing number of states placing responsibility for battery waste on producers, signalling further evolution in US battery policy as demand for portable power continues to rise.