Japan's government is weighing legislation that would compel automakers to collect used electric vehicle batteries, as the voluntary scheme struggles to keep pace.

The country's Environment Ministry and Ministry of Economy, Trade and Industry jointly drafted a report last week proposing policy measures and a timeline for establishing a formal EV battery recycling framework, according to Nikkei Asia.

A working group is expected to be convened this summer.

Existing rules require auto salvage firms to retrieve batteries from scrapped vehicles.

Those unfit for resale are gathered through a voluntary programme administered by the Japan Auto Recycling Partnership, with participating manufacturers meeting processing costs.

The scheme currently includes 14 domestic carmakers — among them Toyota Motor — and 18 overseas manufacturers, including Volkswagen and BYD.

Approximately 13,000 batteries were recovered through the arrangement in fiscal 2024.

The Environment Ministry, however, anticipates a sharp rise in discarded units — nearly 50,000 in fiscal 2026, climbing to roughly 130,000 by fiscal 2030 and around 400,000 by fiscal 2040 — a trajectory that would overwhelm the voluntary model.

Delays in recovery risk burdening salvage operators and potentially driving illegal disposal.

The fire hazard posed by lithium-ion batteries adds further urgency to ensuring safe collection.

Used EV batteries also contain lithium, cobalt and other critical metals that Japan relies heavily on imports to supply.

Improved recycling is seen as a route to greater domestic resource self-sufficiency and economic security.

One option under consideration would designate EV batteries as regulated items under the recycling law, making manufacturer collection a legal obligation.

This is expected to raise costs that could ultimately be borne by consumers.

Storage batteries are already listed as critical products under Japan's Economic Security Promotion Act, though high costs have constrained recycling progress under that framework.

The two ministries are also examining how to assess the condition of used batteries to promote domestic reuse.

Internationally, the European Union introduced its Battery Regulation in 2023, establishing mandatory recycling targets.

China, meanwhile, is developing a system to track batteries from manufacturing through to recycling and is easing import curbs on intermediate materials, including crushed batteries, to strengthen supply.