Israel Plans Mandatory Recycling Law for Electric Vehicle Batteries by 2027
Israel's Ministry of Environmental Protection is developing a comprehensive reform to legally require the recycling of lithium batteries from electric and electrified vehicles. The reform is expected to be presented this year, take effect in 2027, and impose obligations on vehicle importers starting in 2029. The responsibility for recycling will fall on vehicle manufacturers through their importers in Israel, under an extended producer responsibility law. The plan includes establishing a government recycling corporation to manage battery collection and recycling, funded by manufacturers via importers. One proposed mechanism is a recycling fee charged on every electric vehicle sold, which is likely to increase vehicle prices for consumers.
A Knesset research center study from June highlights a looming environmental challenge as Israel faces a significant accumulation of end-of-life lithium batteries by the end of the decade. By the end of 2025, Israel had approximately 316,000 electric and plug-in hybrid vehicles (7% of the fleet) and 487,000 hybrids with smaller batteries (11%). The rapid growth includes nearly 80,000 new electrified vehicles added in the first seven months of 2023. The study notes that the average battery lifespan is about eight years, with limited reuse, and currently, Israel lacks regulations on battery recycling unlike many other countries.
The reform aligns with upcoming European regulations requiring manufacturers to track battery life cycles from production to disposal starting in 2027. The Ministry of Environmental Protection is consulting stakeholders and will publish the proposed regulatory framework for public comment once finalized.
Separately, Israel is preparing for a surge in vehicle imports, especially from China, in the last quarter of 2023. This is driven by stricter green tax formulas effective January 2027, which will raise taxes on many hybrid and gasoline models, and the introduction of Euro 7 emission standards in November 2023, which many current models do not meet. Importers are accelerating shipments to avoid higher taxes and regulatory restrictions. New brands like Chery's ICAUR are expected to enter the market soon, with some uncertainty about local importers.
Additionally, new hybrid crossover models have recently launched in Israel, including the Audi Q7 with a turbo-diesel V6 and electric assist priced from 690,000 shekels, and the Dacia Duster hybrid with a 1.2-liter turbo gasoline engine and electric motor, priced between 158,000 and 171,000 shekels. The vehicle market is also facing logistical challenges due to a shortage of car transport ships from East Asia, prompting some importers to use container shipping to speed deliveries.
