This came up several times on the Slashdot discussion on this article and was repeatedly put to bed with two points. 1) The batteries on the Prius are NiMH, not lead acid batteries. These batteries are far less damaging to the environment if you chuck them in a landfill than NiCd or lead acid batteries, and moreover, are easily recyclable and have mineral components that make them well worth recycling. 2) That Toyota offers something like a $200 bounty for used Prius batteries for recycling, which suggests that they really are worth recycling and they want them back, or at least Toyota realizes that their customers are concerned about the environment (because they bought the hybrid in the first place) and are savvy enough to assauge their concerns about the batteries being an environmental hazard.

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RE: Warranties and Batteries
I'm not sure where this comment came from, but I've heard the point before. I wonder, though, how certain are you that the batteries are landfill bound? If they were, what would be the severity of the environmental impact? Until I get some hard data, I'm not going to pull a skeptic and "suspend judgement."
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