Why LABRI is working in the Philippines
This blog post originally appeared as a guest post on the Lead Battery Notes blog here: https://leadbatteries.substack.com/p/why-labri-is-working-in-the-philippines
LABRI is an NGO dedicated to curbing lead poisoning caused by the unsafe recycling of lead-acid batteries. We were incubated by Ambitious Impact, who were partially inspired to recommend a new charity focused on used lead-acid battery (ULAB) recycling by the work done by the authors of the Lead Battery Notes blog (Hugo Smith and his colleagues).
LABRI works with governments to reduce unsafe lead-acid battery recycling. We started in April 2025 with a specific theory of change in mind: to apply market policies (such as deposit schemes, Extended Producer Responsibility schemes or tax exemptions on the sale of ULABs) to reduce the prevalence of informal lead-acid battery recycling in low- and middle-income countries (LMICs).
We recently spent time in the Philippines to understand the ULAB recycling market there. This article summarises our reflections from the visit.
Summary
In June and July 2025, we conducted a market scoping visit to the Philippines to answer two questions:
What is the size and nature of informal ULAB recycling in the Philippines?
Could targeted government policy effectively reduce lead poisoning from informal ULAB recycling here?
We found that informal ULAB recycling is a significant problem in the Philippines, and that government intervention could effectively address it.
We think that certain features of the Philippine market mean that an Extended Producer Responsibility or deposit scheme for ULABs are particularly promising solutions, including that the market for new lead-acid batteries is dominated by just two companies.
We’re now launching a more comprehensive effort in the Philippines, including hiring a local Policy Officer full-time in Metro Manila and engaging government stakeholders.
Why we looked at the Philippines
We identified the Philippines as a potentially promising first country to work in because it appeared to satisfy several of our initial criteria:
International and country-level data suggest that lead exposure is a significant health concern (Pure Earth, 2023; Global Burden of Disease, 2023).
Global trade data suggests that a large proportion of the lead-acid batteries used in the Philippines are likely collected in the informal sector (see the Lead Battery Notes Global Lead Trade Analysis Dashboard).
From consultations with local NGOs, we assessed that informal recycling was a problem not currently being addressed by other actors, but one that the government of the Philippines might be open to addressing.
We planned to use this scoping visit both to validate these initial impressions and to build connections in the country, with a view to supporting policy development.
The visit: How much of a problem is informal ULAB recycling in the Philippines?
We were in the Philippines for just under 4 weeks, mostly based in Metro Manila, the capital region and largest metropolitan area of the Philippines. The visit consisted of meetings with industry, NGOs, academics and relevant government officials and on-the-ground research activities. We sought information about the ULAB market in the Philippines through a few avenues:
Market research: We visited and collected price data from 17 ULAB buyers in five different cities of Metro Manila to understand how prices varied based on collection systems and location. Our local contacts in the Philippines also visited several other sites of interest, including lead exporters and potential informal smelters.
Modelling: We analysed production data, government licensing information and export data to estimate the size of the informal recycling market in the Philippines.
Industry interviews: We met one major battery manufacturer, one formal collector, three formal recyclers and three informal recyclers to discuss ULAB markets in the Philippines.
Online research: We conducted research to identify the major manufacturers and importers of batteries in the Philippines and accredited recyclers and collectors of ULABs.
We identified a few key trends during this research:
Informal collectors and recyclers process a large proportion of ULABs in the Philippines. Our model suggests that ~50% of ULABs recycled in the Philippines are recycled informally (see our estimate here). We believe this may be a slight overestimate due to underestimates in formal recycling capacity. Industry contacts estimated in conversation with us that the informal market accounts for between 30-40% of national ULAB recycling.We plan to refine our estimates over time by collecting production data from the key recyclers in the Philippines, but believe that this initial estimate is sufficient to confirm that a significant informal market exists in the Philippines.
Informal collectors pay more for ULABs than formal collectors. In Metro Manila, ULABs are collected through two main channels: (i) battery retailers affiliated with the dominant manufacturer, Motolite, and (ii) junkshops who sell to ULAB collectors on the informal market. We collected price data across 17 locations and found that junkshops pay, on average, PHP 200 (~USD 3.50) more per battery than retailers - an over 50% premium (see the price data that we collected here).
Most informally recycled lead is exported for international buyers. Public export data indicates that Philippine exports of refined and unrefined lead more than tripled between 2018 and 2023 (from around 9,000 tonnes to around 31,500 tonnes). Industry figures that we interviewed attribute the growth in the export market to higher prices offered by international buyers, particularly in India and China. The domestic manufacturer sources lead directly from consumers through their own domestic collection and recycling network or purchases lead at the LME benchmark rate, which is below the SHFE prices offered by international buyers. As we are able to collect more industry data, we hope to compare this to a reliable estimate of general battery market growth.
Informal recyclers drain and dismantle ULABs. We were unable to observe smelting, but we believe that it happens at scale. Several junkshops and collectors of ULABs confirmed that they drain the acid from ULABs and dismantle the batteries by hand, including in densely populated areas like Tondo in Metro Manila.
We were unable to directly observe illegal smelting, but we believe that it is happening at scale in and around Metro Manila based on:
Analysis of trade data - We reviewed publicly available exports data to identify: (a) whether exported lead was primarily smelted; and (b) whether the quantity of lead that was exported by the Philippines exceeded the production of formal recyclers in the Philippines. We found that the majority of exported lead had been smelted (we estimate more than 85%, see our analysis here) and that the quantity of exported lead was too large to be accounted for by known formal recyclers.
Public information - We were shown recent videos from social media of informal smelting activity in closed compounds in a semi-urban area. We also identified a metals merchant that claims to recycle ULABs, exports lead ingots and does not have the necessary approvals.
Second-hand reports - We also spoke to several industry players who suggested that informal smelting happens across the Philippines (and many of these industry figures have made similar claims publicly). However, we placed limited weight on these accounts because we do not believe that any of those we had spoken to had directly observed informal smelting.
We are currently planning a short environmental study in confirmed ULAB recycling hotspots around Metro Manila. This will hopefully improve our understanding of the contamination caused by ULAB recycling (and the likely frequency of smelting).
Looking ahead: What are the potential solutions to this problem?
It seems from our market research that price is the main driver of informal recycling in the Philippines; i.e., informal recycling exists because informal recyclers offer higher prices than their formal counterparts. There are several mechanisms that could work to address this market failure, which are discussed in other posts on the Lead Battery Notes blog:
Extended Producer Responsibility (EPR) schemes - EPR schemes make manufacturers and importers of new LABs legally responsible for the safe recycling of ULABs. EPR schemes often set legal targets for the collection and recycling of ULABs. Hugo has already written about how EPR schemes have functioned effectively in China and in Brazil. We think an EPR scheme could work effectively in the Philippines because the number of manufacturers and importers of new LABs is relatively small, and the Philippine government is currently implementing a (much more complex) EPR scheme for plastics.
Deposit schemes - deposit schemes involve manufacturers or retailers levying a deposit on the sale of new LABs that is refundable on the return of a ULAB. These schemes have been used across states in the US. We think a deposit scheme would be feasible in the Philippines because the market for sale of new lead-acid batteries is dominated by just two players, a domestic manufacturer with a retail network, and an importer of lead-acid batteries.
We are now working with government stakeholders, civil society organisations and industry to consider and adapt these policies to the Philippines. During our latest visit, we collected feedback from relevant stakeholders and are now looking to develop a more concrete policy.
How can you help?
We are currently expanding our advisory board and are looking for advisors to provide us with ongoing feedback and guidance about our work in the Philippines. We would be particularly keen to hear from you if you are knowledgeable about:
ULAB markets in the Philippines;
international trade in lead, lead scrap and ULABs; and
efforts to design EPR or deposit schemes for markets similar to the Philippines (such as ASEAN countries).
If you have relevant expertise and would be willing to speak with us, either ad hoc or as an ongoing advisor, please do reach out to us at contact@labrecyclinginitiative.com
