..read this on www.runryder.com. don't know how accurate.posted by Hobbico......
This is from Hobbico Lipo charger manual:

http://manuals.hobbico.com/gpm/gpmp...manual-v1_2.pdf

Disposal Instructions:

1. If any LiPo cell in the pack has been physically damaged,
resulting in a swollen cell or a split or tear in a cell’s foil
covering, do NOT discharge the battery. Jump to step 5.

2. Place the LiPo battery in a fireproof container or bucket
of sand.

3. Connect the battery to a LiPo discharger. Set the discharge
cutoff voltage to the lowest possible value. Set the discharge
current to a C/10 value, with “C” being the capacity rating of
the pack. For example, the “1C” rating for a 1200mAh battery
is 1.2A, and that battery’s C/10 current value is (1.2A / 10)
0.12A or 120mA. Or, a simple resistive type of discharge load
can be used, such as a power resistor or set of light bulbs as
long as the discharge current doesn’t exceed the C/10
value and cause an overheating condition. For LiPo packs
rated at 7.4V and 11.1V, connect a 150 ohm resistor with a
power rating of 2 watts (commonly found at Radio Shack) to
the pack’s positive and negative terminals to safely discharge
the battery. It’s also possible to discharge the battery by
connecting it to an ESC/motor system and allowing the motor
to run indefinitely until no power remains to further cause the
system to function.

4. Discharge the battery until its voltage reaches 1.0V per cell
or lower. For resistive load type discharges, discharge the
battery for up to 24 hours.

5. Submerse the battery into bucket or tub of salt water. This
container should have a lid, but it does not need to be airtight.
Prepare a bucket or tub containing 3 to 5 gallons of cold
water, and mix in 1/2 cup of salt per gallon of water. Drop the
battery into the salt water. Allow the battery to remain in the
tub of salt water for at least 2 weeks.

6. Remove the LiPo battery from the salt water and place it in
the normal trash.