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Proper disposal and recycling of a lithium battery to keep it out of the landfill is easily accomplished. Call2Recycle offers a great program and many drop-off sites. The best drop-off places I have found are Home Depot and Lowes. They keep a recycle bin right near the entrance for easy drop-off of rechargeable lithium batteries. Please note that employees at most drop-off sites won’t really know much about your electric bike battery, so just tape off any open wires and simply drop them in the bins. I have personally spoken with the people at Call2Recycle and that is what they recommend.
Below is a video from their site about what is done with lithium batteries.