Exide Technologies' battery recycling plant in Frisco, Texas US, is to close by the end of this year after a battle by city residents over environmental issues.
The company is now being sued by two environmental groups concerned about the impact the plant has had on the health of the population.
The groups feel regulators failed to take action on violations being committed at the plant as found on inspections.
"There are chronic contamination problems at Exide that still pose a hazard to Frisco residents and property. There's also a long history of law-breaking that the company must be held accountable for," said Colette McCadden, secretary of Frisco Unleaded.
Exide has been a target of critics in recent years because of lead emissions that exceed the US federal air-quality standard. That standard was tightened in 2008 because of mounting research into the dangers of exposure to the toxic metal at very low levels.
Exide are ceasing operation at the end of this year and the city is buying the land to re-generate.
Things are looking better for the company elsewhere however. In India Exide are planning to expand their manufacturing capacity. They will focus upon the invertor segment as opposed to automotive batteries.