Firefighters will remain on scene overnight at the scrap metal and tyre yard in Underwood Street in Beard.
The fire is contained but not yet under control. There is no threat of the fire spreading to surrounding properties.
The smoke is no longer impacting suburbs in Queanbeyan.
Roads near Underwood Street are expected to be clear in the morning but people should follow directions of any police who may be in the area.
The Environment Protection Authority is working with ACT Fire & Rescue to undertake air quality tests at the incident.
About ten units from ACT Fire & Rescue, Fire & Rescue NSW and Air Aviation are on site.
The next update from ESA Media will be provided about 6am tomorrow morning (Monday, 18 June 2018).