For companies that rely on battery-powered equipment to get work done, transporting lithium batteries has not always fit neatly within the existing Materials of Trade exception.
Construction crews, landscapers, tree service companies, food service operations, and entertainment businesses may need to move batteries and battery-powered equipment as part of their everyday work, but previous quantity restrictions could make those operations unnecessarily complicated. HM-268C changes that equation by increasing the lithium battery quantities permitted under the Materials of Trade exception. The final rule takes effect September 3, 2026.
The change is significant, but it shouldn’t be misunderstood as a blanket exemption for lithium batteries. The higher allowances still operate within the Materials of Trade framework, and that framework carries conditions involving the way batteries are transported, secured, tested, and communicated to the vehicle operator. For businesses adjusting their procedures, understanding those conditions is just as important as knowing the new numbers.
Hazmat University provides self-paced and flexible online hazmat training courses that help employees understand changing dangerous goods requirements and apply them to the functions they actually perform. Our lithium battery training courses can give organizations a way to bring employees up to speed as the new Materials of Trade provisions take effect.
What the Materials of Trade Exception Is Designed to Do
The Materials of Trade, or MOT, exception addresses hazardous materials transported in support of a business rather than as the primary purpose of the transportation. PHMSA describes MOTs as a category of hazmat that can be subject to fewer HMR requirements when transported by motor vehicle in small quantities as part of a business other than transportation.
That distinction is important. A landscaping company carrying battery-powered equipment to a job site is fundamentally different from a company whose business is transporting lithium batteries for customers. The MOT framework recognizes that difference and provides regulatory relief when the transportation fits the applicable conditions.
Lithium batteries have created a particular challenge because modern equipment can require batteries that are substantially larger than the quantities contemplated by older MOT limitations. PHMSA’s HM-268C rulemaking was specifically developed to address those limitations for domestic companies using battery-powered equipment in trades. The rule identifies construction, landscaping, mowing, tree service, food service, and entertainment companies among the businesses affected by the change.
The result is greater flexibility, but not an open-ended permission to move any number or size of batteries under the MOT exception.
What HM-268C Changes for Lithium Batteries
The central change is found in the revised Materials of Trade provisions in 49 CFR 173.6. For lithium cells and batteries that are not contained in equipment, the rule establishes a substantially higher allowance than the previous framework. The new provisions establish several important parameters:
- Per-battery allowance: A lithium cell or battery may have a net weight of up to 30 kg, or 66 pounds, subject to the applicable MOT provisions.
- Vehicle allowance: The aggregate net weight of qualifying lithium batteries on a motor vehicle may reach 500 kg, or 1,102 pounds.
- Batteries in equipment: The revised provision does not impose the same quantity limit on lithium batteries when they are contained in equipment.
- Testing requirement: Lithium cells and batteries, including those contained in or packed with equipment, must be of a type proven to meet the applicable criteria in Part III, Subsection 38.3 of the UN Manual of Tests and Criteria.
- Safety controls: Batteries must be packaged or secured to prevent short circuits, damage caused by shifting or placement, and accidental activation of equipment.
This is where the rule becomes more interesting operationally. The increase isn’t simply a larger number inserted into an existing exception. PHMSA paired the increased quantities with specific safeguards intended to address the hazards associated with transporting larger lithium batteries.
For companies that have previously had to limit battery quantities or seek alternative arrangements, the change could make routine movement of battery-powered equipment much more practical.
Which Industries Stand to Benefit?
HM-268C is particularly relevant to businesses whose employees regularly transport battery-powered tools and equipment from one work location to another. The rulemaking specifically identifies construction, landscaping, mowing, tree service, food service, and entertainment companies as businesses that can benefit from the updated MOT provisions.
Consider that landscaping operation transporting battery-powered mowers, trimmers, blowers, and replacement batteries between its facility and job sites. Under a restrictive quantity framework, the batteries needed for an entire day’s work could create logistical complications. The revised MOT allowance gives that operation more room to transport the batteries necessary to support its work while remaining within the exception’s conditions.
The same principle can apply to construction crews moving battery-powered tools, tree service companies transporting equipment to different properties, or entertainment companies using battery-powered production equipment.
The key is that the materials are being transported in support of the trade. The exception is not intended to turn commercial transportation of hazardous materials into an MOT activity simply because the material happens to be a lithium battery.
The Higher Limits Do Not Remove the Safety Requirements
This is the part shippers cannot afford to overlook. A larger permitted quantity does not mean that lithium batteries can simply be placed in a vehicle and transported without attention to securement or battery condition. PHMSA specifically incorporated safeguards into the revised MOT provisions.
The batteries must be protected against the types of events that can create transportation hazards. That includes preventing electrical short circuits, protecting batteries or equipment against damage caused by shifting, and preventing accidental activation of equipment.
The testing requirement is equally important. The revised provisions require lithium cells and batteries transported under the MOT exception to be of a type proven to meet the applicable UN Manual of Tests and Criteria requirements.
There is also an important hazard communication provision. Packages containing lithium cells or batteries that exceed 30 kg of battery net weight must carry the lithium battery Class 9 label and applicable four-digit UN identification number. In addition, the motor vehicle operator must be informed about the presence of hazardous materials and the requirements applicable to the MOT shipment.
These provisions illustrate the regulatory philosophy behind HM-268C. PHMSA is providing more flexibility because the previous restrictions could be unnecessarily burdensome, but the agency is retaining controls intended to address foreseeable transportation hazards.
What Companies Should Review Before Using the New Allowances
Businesses should resist the temptation to treat September 3, 2026, as nothing more than a date for increasing a spreadsheet limit. The better approach is to review how batteries actually move through the organization.
- Inventory current batteries: Identify the lithium cells and batteries employees transport, including their individual weights and whether they are installed in equipment.
- Map transportation activities: Determine which employees, vehicles, job sites, and operations rely on the MOT exception.
- Review securement: Examine how batteries and battery-powered equipment are protected from shifting, short circuits, and accidental activation.
- Confirm battery testing: Verify that batteries being transported under the exception meet the applicable testing requirements.
- Update procedures: Revise written instructions, vehicle procedures, and employee guidance to reflect the new allowances and continuing conditions.
- Train affected employees: Make sure employees understand that the increased limits operate within a specific regulatory exception rather than eliminating hazmat responsibilities.
The objective should be to make the new flexibility operationally useful without allowing the change to create a new source of compliance mistakes.
Why Lithium Battery Training Matters With the New Rule
HM-268C is a good example of why lithium battery training needs to address more than labels and shipping classifications. Employees need to understand how the battery is being transported, why the MOT exception applies, what quantity limits govern the shipment, and which safety conditions remain in force.
That understanding becomes more important when employees are not traditional hazmat shipping specialists. A construction worker, landscaping supervisor, or field technician may be responsible for moving battery-powered equipment without spending all day working with the Hazardous Materials Regulations.
Hazmat University offers online hazmat training courses that can help bridge that knowledge gap. Its training includes lithium battery-specific instruction as well as ground and multimodal courses covering applicable dangerous goods requirements. The online format allows employees to complete training on their own schedules, while interactive lessons and quizzes reinforce the regulatory concepts.
For companies preparing to use the expanded MOT provisions, our lithium battery training courses can also help translate a regulatory amendment into practical workplace procedures. Employees should understand not just that the limit increased, but why the conditions surrounding that increase still matter.
Do Not Confuse More Capacity With Fewer Responsibilities
The benefit of HM-268C is clear. Businesses that depend on battery-powered equipment can have more flexibility when transporting lithium batteries in support of their operations. The rule recognizes that modern equipment has outgrown some of the assumptions underlying older MOT quantity limits.
But the exception remains an exception. The revised provisions do not erase the need for proper battery testing, securement, protection against short circuits, prevention of accidental activation, or employee awareness of the applicable requirements. For batteries exceeding the specified threshold, additional marking and labeling provisions also come into play.
Companies should therefore approach HM-268C as an opportunity to modernize their transportation procedures, not as a reason to stop treating lithium batteries as regulated hazardous materials.
Put the New MOT Rules Into Practice With Our Up-to-Date Online Hazmat Training Courses
The regulatory change gives businesses greater flexibility, but flexibility is most valuable when employees know how to use it correctly.
Hazmat University’s online lithium battery training courses provide a convenient way for hazmat employees to build their knowledge around the requirements governing lithium battery transportation. Training is available online and can be completed at a pace that fits operational schedules, making it practical for employees who cannot step away from their regular responsibilities for extended classroom sessions.
As HM-268C approaches its September 3, 2026 effective date, organizations should review their battery inventories, transportation practices, securement procedures, and employee responsibilities. Then use targeted training to close the knowledge gaps that could undermine the benefit of the new rule.
A higher Materials of Trade allowance can simplify transportation. The right training helps make sure your employees understand where that flexibility begins, where it ends, and what they must still do to transport lithium batteries safely and compliantly. Contact us today to explore our comprehensive range online hazmat training courses and let us help you select the ones that your team needs most.
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