In the wake of a spate of fires caused by lithium-ion batteries, including the most recent at Abilities' North Shore recycling plant, Auckland Council supports the ruling by the Auckland District Court in the matter of Auckland Council v Simsmetal Industries Limited, following a significant fire at the Simsmetal scrap metal yard in Favona in July 2023.

The incident, caused by the ignition of a lithium-ion battery within a large scrap metal stockpile released toxic smoke across parts of Auckland and highlighted a growing national and international issue surrounding battery disposal and fire risk.

Judge Smith, in his decision, recognised the unique challenges posed by lithium-ion batteries, noting there is currently no available technology capable of reliably identifying or detecting them within scrap material.

The judge described the situation as “a new and emerging issue,” which has led to fires not only in New Zealand but around the globe.

While acknowledging Simsmetal’s cooperation and the absence of any intentional wrongdoing, Judge Smith imposed a fine of $30,000, reduced from an initial starting point of $50,000, to reflect an early guilty plea, meaningful cooperation, and the agreement to enforcement orders.

The enforcement orders issued require Simsmetal to implement several improvements at the James Fletcher Drive, Favona site.

These include the completion of a secondary access point to the site by May 2025, the development of a certified Fire Risk Management Plan and a Stockpile Management Plan. The orders are registered with the Environment Court and will remain in place unless superseded by conditions with a new resource consent.

Judge Smith noted, “There has been considerable difficulty in finding a technical solution to the problems with batteries catching on fire.

“This is not only a national problem but an international one; these orders form a workaround solution until more technical solutions, particularly for bulk disposal, are available.”

Auckland Council's Field Operations Manager for Compliance, David Pawson, emphasised the importance of remaining vigilant despite the novelty of the issue.

“We recognise this is a new issue and we’re all finding our way with lithium-ion batteries and those handling them.

“But businesses still need to take responsibility for their disposal - this is their business. While we’re all working on solutions, consent conditions still need to be met.”

The council views this case as an important precedent in balancing empathy for emerging challenges with the necessity of regulatory compliance.

It also highlights the importance of proactive risk management and industry-wide collaboration to adapt to evolving environmental risks.

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