The Exide battery recycling plant in Lower Hutt is to sue Commerce Minister Simon Power for allowing shipments of used lead batteries overseas.
Under the Basel Convention, the Government has an international obligation to handle toxic waste, if possible, within the country's borders.
A spokesperson from Exide's lawyers, ChenPalmer, says it will file papers in the High Court this week seeking a judicial review into whether the Government has met its obligations.
The Exide plant has been shut for the past few days because of a shortage of work.
The Government says it may launch a review of the disposal of used lead batteries in New Zealand.
Environment Minister Nick Smith, who is in charge of issuing permits, says the convention allows used batteries to go overseas if the country receiving the product is properly approved.