Insurers call for urgent clarity over EV disposal procedures while highlighting ‘practical difficulties’

While some importers are now agreeing to take back EV batteries for free, vehicle owners and insurers are being asked to pay for dismantling accident-damaged vehicles and removing their batteries before scrapping, the Insurance Association of Malta (IAM) has said.

IAM issued a statement seeking legal clarification on whether these charges are permitted under the law, particularly in light of the minister's clarification. Energy Minister Miriam Dalli had told Parliament that the responsibility for the costs of dismantling a vehicle and treating its battery fell on the manufacturer, importer or distributor who originally placed the vehicle on the market.

While Minister Miriam Dalli’s statement provides clarity on financial responsibility, questions remain over the practical arrangements for dismantling accident-damaged vehicles, safe handling of their batteries and procedures for scrapping these vehicles, the association argued.

“There are still several matters that have yet to be resolved, particularly relating to the safe storage, handling, and transportation of EV batteries. Malta currently lacks suitable facilities for treating these batteries, while restrictions apply to shipping them overseas,” IAM said in a statement.

A further difficulty arises when an EV is delivered to an authorised end-of-life vehicle treatment facility after its battery has already been removed, the association added, explaining that it was informed of cases where facilities have refused to accept such vehicles or issue the Certificates of Destruction required for deregistration.

This is happening even though EU and Maltese legislation confirms that the relevant producer or authorised operator is responsible for the disposal of vehicles once their batteries have been lawfully removed and appropriate documentation is in hand, the association said.

“These practical difficulties demonstrate that who is legally responsible is only part of the solution. Clear and consistent procedures are equally important to ensure that accident-damaged vehicles can be safely and properly disposed of without unnecessary delays or additional costs," the association said.

It called on the Environment and Resources Authority (ERA), Transport Malta, vehicle importers and authorised scrapyards to establish clear and workable procedures for dismantling, handling and disposing of end-of-life EVs and their batteries.

It also stressed the importance of providing clear guidance to vehicle owners, insurers and other stakeholders on their respective responsibilities and the procedures to follow.

“If Malta is serious about encouraging greater EV ownership and meeting its environmental targets, consumers must have confidence in the entire life cycle of these vehicles. This goes beyond the availability of charging infrastructure and includes arrangements for their maintenance, repair and eventual disposal. Ensuring that safe and effective disposal arrangements are in place is essential, both for protecting the environment and for building public confidence in electric vehicles,” the association concluded.