I'm planning to buy a 2002 Prius, which will eventually need a new battery. When I mentioned this to my mom, she mentioned she had heard the batteries were "expensive" to recycle. I have tried to do some research, but I can't find a cost associated with recycling a battery, even though I know there is a Toyota program.
Buying a new battery can be expensive but recycling yours actually gives YOU some money. The materials inside the battery are worth a couple hundred dollars. So you won't be charged to recycle yours.
It's been a while since I looked, but there are places that sell (and sometimes sell and install) re-manufactured batteries. Typically these places will require you to pony up your old battery in lieu of a core charge, so you're REALLY recycling your batteries if you go this route. You're looking at a few thou at the most.....not the $8,000 that the FUD-meisters always quote. Shop early. Shop often. You're on the left coast, so I'm sure that there's probably a "Prius Emporium" near you. Don't borrow trouble though. You're G1 may not be on its original battery. Don't lie awake at night worrying about it. You'll lose sleep and the battery will be in pretty much the same shae as it was when you went to bed. Good Luck!
Toyota gives a core credit for the old hybrid battery which is applied to towards the new one. FYI, the 2nd generation Prius gained an improved hybrid battery over the 1st gen (01 - 03) and the 3rd gen Prius has an improved transaxle allowing it to EV at higher speeds. Youtube video below, produced by Toyota is very informative about production, driving and recycling. Near the end, they show people working on hybrid battery recycling including melted down nickel. Prius Life Cycle - YouTube