A levy will be placed on all batteries being imported into Australia through a national stewardship scheme. Automotive lead-acid batteries are exempted from the proposed scheme on the basis that there is an effective market already in place.
The Battery Stewardship Council (BSC) was granted permission for the five-year scheme that includes lithium-ion batteries used in light vehicles and e-bike applications, by the Australian Competition & Consumer Commission (ACCC).
The BSC estimates that only about 3% of handheld batteries in Australia are recycled. Most batteries go to landfill.
The scheme is based on an equivalent battery unit (EBU) set at 24-grams (the size of an AA battery) and will apply to firms importing more than 1,000 EBU/annum. A levy of AUS$0.04 per EBU will be applied and the costs will be put on end users.
The cash generated will fund rebates up to AUS$3.50/kg for regional collections; $2.50/kg metropolitan collections; $1.00 for sorting and $1.00 for processing used batteries.
Members of the scheme must agree to only deal with other members along the supply chain, with limited exceptions such as for pre-existing arrangements.
Responsibility for managing disposal of batteries falls to local governments in Australia, which has led to a lack of commercial interest from businesses to promote environmentally responsible disposal of end of life (EOL) batteries.
ACCC deputy chair Delia Rickard (pictured) said: “This battery stewardship scheme has the potential to be an important tool for encouraging businesses across the battery supply chain to take responsibility for treating batteries in an environmentally responsible way.
“The ACCC believes the scheme can achieve significant environmental benefits by increasing the number of batteries that get recycled rather than going to landfill.”
The scheme includes levies on alkaline batteries and those used in power tools, mobile phones and laptops.
Mixed battery recycler Lithium Australia welcomed the move, unsurprising as its subsidiary Envirostream Australia is set to capitalise on the scheme.
Lithium Australia MD Adrian Griffin said: “The levy on batteries will commoditise EOL batteries, currently considered waste material, and the value created will be a strong incentive to divert them from landfill. We are anticipating a significant increase in feed material for Envirostream, and the more it gets the greater the benefit for the environment.
“The scheme should encourage more sustainable use of critical materials used in the manufacture of batteries, reducing reliance on primary production which, in some cases, relies on child labour and supply from conflict zones.”
BSC was formed in 2018 with the primary goal of establishing a battery stewardship scheme in Australia that would see a significant increase in battery collections and recycling.
The ACCC has granted authorisation until 26 September 2025.
