EV Battery Fires Expose New Zealand Regulatory Gap

The fire that destroyed a North Shore recycling facility is a stark reminder of what’s at stake when battery systems outpace regulation.

In the wake of the Wairau Valley blaze — where lithium batteries may have contributed to the scale of destruction — the Imported Motor Vehicle Industry Association (VIA) is renewing its call for national standards governing the reuse and recycling of electric vehicle (EV) batteries.

A new industry report investigates concerns around battery end-of-life management in Aotearoa. It finds that while a growing number of businesses are repurposing and recycling EV batteries, they are doing so without formal safety standards, oversight, or ownership rules.

“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,” says VIA Chief Executive Greig Epps.

No standards, no certainty

The sector report, authored by VIA Technical Lead Malcolm Yorston, shows that battery handling practices vary widely across the country. Some operators use Korean and aviation-grade standards for testing and fire containment, but these are imported workarounds — not a substitute for locally approved systems.

Recyclers and refurbishers face additional complexity due to inconsistent battery chemistries, opaque supply chains, and restrictions on access to diagnostic software. Many operate in good faith, but in the absence of formal guidance, even responsible actors are exposed to legal and insurance risks. Some insurers have already begun withdrawing coverage for second-life battery installations, especially in residential settings.

The stakes are rising as EV uptake accelerates. Batteries from vehicles imported ten years ago are now reaching end-of-life — and more are arriving each year. VIA’s report notes that while local operators collaborate where possible, including partnerships between refurbishers and certified recyclers, there is still no domestic facility capable of extracting lithium or other critical materials at scale.

Three steps the government should take now

Establish national standards and a battery registry 

VIA is calling for a comprehensive set of EV battery handling and reuse standards tailored to New Zealand conditions, along with a centralised battery tracking system to ensure end-to-end accountability.

Define battery ownership at end-of-life

Without clear rules, uncertainty over who is responsible for a used battery creates gaps in compliance, handling, and insurance. VIA says this lack of clarity puts consumers and recyclers at risk.

Fund safe infrastructure and training 

Businesses need investment in safe storage facilities, handling equipment, and certified training pathways. VIA also sees a role for the Energy Efficiency and Conservation Authority (EECA) in funding sector development and supporting long-term recovery capabilities.

The report also highlights viable international models New Zealand could adapt, including the EU’s battery lifecycle regulations and Chinese specifications for second-life battery use. These could form the basis for co-designed local guidance in partnership with industry, recyclers, OEMs, and insurers.

The fire at Abilities Group may not yet be officially attributed to lithium batteries, but the industry says the pattern is clear. In the absence of national direction, battery-related risks are falling through the cracks.

“There’s already a network of businesses doing this work, and doing it with integrity,” says Epps. “But if we don’t act now, we’ll keep putting lives and property at risk — and we’ll miss the opportunity to build a safe and sustainable battery recovery system.”

About:

VIA (Imported Motor Vehicle Industry Association) represents businesses involved in importing, preparing, wholesaling, and retailing used vehicles into New Zealand, primarily from Japan, Singapore, and other markets. As the industry's collective voice, VIA engages with government and stakeholders to support fair regulation and sustainable practices across the sector.

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