Lithium-ion battery explosions linked to junkyard fires and decreased port traffic.
In the Philadelphia region, a significant backlog of scrap metal has emerged in scrapyards following the closure of EMR USA Holdings Inc.’s metal-shredding facilities in Camden on June 4. This action was prompted by a series of fires that have plagued the local scrap shipping industry, which handles approximately one million tons of scrap annually.
Scrap dealers attribute the proliferation of these fires to the rising prevalence of lithium-ion batteries. While large car batteries have been a concern, it is the smaller, more ubiquitous batteries from lawn mowers, construction tools, smart devices, and household appliances that present a greater risk. The two-alarm fire that occurred on May 29 was preceded by a four-alarm blaze on February 21, 2025, forcing the evacuation of 100 nearby residents. Camden’s code enforcement director, Gabriel Camacho, has classified the incidents as up to a dozen “harmful, offensive, or obstructive” fires at the facility located near the Beckett Street Terminal.
The focus of city officials has been on the consequences of these fires rather than their underlying causes. In an effort to resume operations, EMR CEO Joseph W. Balzano has proposed a settlement to pay the city .5 million upfront, along with .2 million over the following five years, coupled with additional funding for community and facility improvements. While the initiative has received support from Mayor Victor Carstarphen, it has also drawn criticism from local residents and activists.
A crucial City Council meeting is set to take place to discuss the settlement. Currently, EMR employs 575 workers, nearly 200 of whom are Camden residents. The company is responsible for shredding and shipping scrap metal, primarily to U.S. electric steel mills and other recyclers.
The problem of lithium-ion battery fires is intensifying, with financial and logistical ramifications for scrap dealers. Competing terminals in neighboring areas have begun to capture a portion of EMR’s business. According to Balzano, the frequency of these fires is alarming and regulations are needed to prevent hazardous batteries from entering the recycling stream.
Lithium-ion batteries are becoming increasingly integrated into everyday products, yet their improper disposal has led to frequent fires at recycling facilities. The Camden facility, which has been operating since it was acquired by European Metal Recycling in 2006, has seen its workforce management strained by a series of fire incidents that are challenging the safety protocols of scrapyards across the region.
In response to the pervasive issue, New Jersey lawmakers are advancing legislation aimed at improving the tracking and regulation of lithium-ion batteries and scrap recycling yards. The call for comprehensive federal legislation to address the recycling and disposal of these batteries is gaining traction, as industry leaders emphasize the urgent need for manufacturers to contribute to responsible recycling practices. As this situation unfolds, local scrapyards are increasingly confronted with the dual challenges of regulatory compliance and ensuring the safety of their operations.
