A major battery energy storage system (BESS) fire at Moss Landing has resulted in the removal of up to 100,000 lithium-ion battery modules under Environmental Protection Agency (EPA) oversight, highlighting the importance of recyclers capable of processing damaged feedstock. The American Battery Technology Company (ABTC) has been selected to handle and recycle this material.

Following a fire at Vistra Corp.’s 300MW/1.2GWh Moss Landing BESS facility in January 2025, approximately 100,000 lithium-ion battery modules are being removed from the site and managed under EPA oversight.

Whilst roughly 55% of the modules were directly damaged, the entire battery system is being taken offline and decommissioned due to system-wide safety risks. This represents the largest lithium-ion battery clean-up operation in EPA history.

The ABTC, which operates a lithium-ion battery recycling facility in Nevada, has been contracted and approved by the EPA to manage the recycling of these batteries. The work involves the safe handling and processing of damaged and potentially unstable battery materials.

The ABTC estimates the value of recovered battery materials from this project to be approximately US$30M.

To be eligible for this type of federal clean-up contract, a company must be approved to receive and process hazardous battery waste under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA).

The CERCLA is the federal programme that governs the clean-up of hazardous substances and requires facilities involved in clean-up operations to meet strict environmental and public safety standards.

In a market where end-of-life (EoL) battery feedstock is increasingly competitive, the capability to safely process damaged or non-standard batteries offers a meaningful strategic advantage.

Companies that can manage high-risk battery waste streams are positioned not only to secure feedstock but also to be compensated for taking and processing it, which assists in offsetting operating costs. This is particularly relevant at a time when, despite recent upticks in lithium prices, achieving profitability in recycling operations remains challenging.

More broadly, this clean-up underscores the growing role of regulatory oversight in the lithium-ion battery lifecycle. EoL battery management is shifting from an afterthought to a core component of national infrastructure tied to safety policy, materials recovery, and supply chain resilience.

Recyclers that demonstrate strong safety standards, compliance readiness, and operational flexibility are likely to be awarded future large-scale contracts as the market and regulatory environment continue to mature.