The new fire suppression and prevention system will require the installation of new plant and machinery at the facility in Tower Lane.
Fully automated, the system does not rely on human intervention to detect a fire.
It uses infrared heat detection cameras to monitor stockpiles and identify heat spots before they become visible.
If early signs of a fire were detected, the system would automatically deploy water cannons, allowing action to be taken before flames take hold.
A public consultation on the planning application, external runs from Friday until 19 December.
In the 12 months up to March 2025, Hampshire and Isle of Wight Fire and Rescue Service recorded 156 incidents involving lithium batteries, an increase of 64 on the previous year.
Over the past three years, Portsmouth has experienced 39 battery-related fires. Southampton has seen 24 similar fires, while the Isle of Wight has recorded 18.
The batteries were found to be the likely cause of fire at a recycling centre in Portsmouth in 2024 which closed part of the M275 for a weekend.
It comes as Hampshire County Council has applied to extend temporary planning permission for two of its household waste recycling centres – at Fishery Lane, Hayling Island and at Casbrook near Romsey – for another ten years.