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.