With the rapid technological advancements and innovations witnessed over the past few decades, there has been a corresponding development in the evolution and consumption of batteries.

Electronic products are now central to modern society– both in a lifestyle and economic sense. Nowadays batteries are ubiquitous and provide for greater utility of a myriad of products that we use on a day-to-day basis, including but not limited to laptops, mobile phones, watches, power tools and tablets. Increasingly we are now also seeing batteries being utilised to support mobility, in products such as electric cars, e-bikes and e-scooters. Furthermore, they are increasingly utilised in commercial energy technology. In fact, as we expand our reliance on renewable energy, demand for batteries and their materials is projected to increase 500% by 2050.

These developments bring new challenges that must be embraced and addressed. This will require industry to work closely with government, taking collective responsibility to drive action. This includes ensuring that batteries and the embedded materials remain in the circular economy and that public safety concerns are prioritised.
What is the landscape with battery management in Australia?

Until fairly recently Australia did not have any formalised industry-wide product stewardship schemes for the battery sector. This changed in 2020 when the Battery Stewardship Council (BSC) was granted approval by the Australian Competition and Consumer Commission (ACCC) to establish the B-cycle scheme – a national stewardship arrangement managing all types of end-of-life batteries except for lead-acid batteries and batteries already covered via other schemes. In its early years the B-cycle scheme has focussed on capturing smaller, consumer and portable batteries – typically alkaline and lithium batteries.

In 2019, it was estimated that 22,000 tonnes of batteries under 5 kilograms were sold into the Australian market. During the same period 18,500 tonnes of waste batteries were generated (about 800 million equivalent batteries units) and 90% were being inappropriately disposed of to landfill and impacting on the environment and public safety. The B-cycle scheme made significant progress, nearly doubling the collection and recycling rate.

However, in recent times it has become evident that the market has shifted significantly since the scheme was originally conceived and designed, especially in terms of the risk profile. Of particular concern is the increasing fire risk associated with rechargeable batteries. Data collated by the NSW Fire & Rescue Service showed that there was a substantial increase in the number of fire incidents, injured persons, evacuations and fires in the downstream waste & recycling supply chain attributable to lithium-ion batteries. This necessitates that public safety needs to be adequately de-risked.

Added to this are a range of other issues being faced by the B-cycle scheme that include:

• The level of free riding that is restricting scheme outcomes – caused by importers of batteries (included embedded batteries) not contributing financially to the recovery efforts.
• A static financial model limiting success (i.e. fixed levy income in an inflationary environment with declining commodity values).
• Risks and costs that vary by battery type / chemistry which are not accounted for in the current ‘one size fits all’ model.
• High cost of inaction leading to public detriment and resulting in costs being borne by government and industry – that is the direct cost of increased fire incidents is being borne by industry and government, however ultimately the consumer pays without having the underlying problems and causes addressed.

What changes are on the horizon?

Given the issues outlined above, the BSC Board believes that changes are necessary to future proof the B-cycle scheme. This will involve both a redesign of the financial structure fundamentals and the implementation of measures to better manage the risk. The BSC will also be putting forward a proposal for regulatory reform targeting free riders.
As part of the proposed B-cycle scheme redesign, which will ultimately require ACCC authorisation, some of the key suggested changes include:

• Inclusion of embedded batteries not covered by existing regulated schemes, including those in small electrical and electronics equipment (SEEE) and vapes. Though potentially this could be expanded to all SEEE, including those products that do not contain embedded batteries.
• A financial model to be built on a total cost recovery basis meaning that the cost of scheme operations including those in safety measures are covered by the levy and adjusted annually if required.
• Investments to be made in risk mitigation by battery type.
• Introduction of an annual review of eco-modulated levies and rebates (an eco-modulation levy system is one that recognises the sustainability outcomes of different battery types, and the different risks and costs associated with each battery type).

The redesigned scheme will include an increased budget for community education and awareness raising of safety concerns.

The issue of safety (and fires) is currently very high on the agenda. The Waste Management & Resource Recovery Association (WMRRA) has been one voice leading the call for urgent action. It has noted that the waste and resource recovery sector is experiencing a rise in fires in vehicles and facilities due to the ongoing incorrect disposal of batteries. This issue has negatively affected worker safety, damaged recycling assets, and hindered efforts to recover and recycle our waste. In response, NSW Fair Trading has announced plans to implement stricter measures that ensure lithium-ion battery powered products meet safety standards and are appropriately tested, certified and marked before they enter the market. Stakeholders were invited to provide feedback on the relevant safety standards and the appropriate transition period before the new standards take effect. The NSW Government is currently considering feedback from stakeholders which will inform the measures. Whilst these rules will only apply in NSW, they will potentially influence other states given New South Wales is the biggest domestic economy.

Batteries are also expected to be targeted via the planned regulated product stewardship scheme for solar photovoltaic system waste. The plan, which is still on the drawing board, proposes all solar panels, inverters, and potentially household energy storage batteries, would be covered by a legislated scheme. Industry players in the solar panel sector are of the view that their scheme should cover solar system batteries, although the BSC has indicated its expanded scheme could capture these too.

What are the implications and ramifications for the National Television and Computer Recycling Scheme and the ICT sector?
The growth and proposed expansion of battery stewardship initiatives, along with efforts to enhance product safety standards, will ultimately affect the broader e-waste collection and recycling system in Australia – as well as involved stakeholders. But what are some of these impacts?

1. The redesign of the B-cycle scheme, as outlined above, is to a significant degree premised on de-risking the system and raising health and safety outcomes. By addressing the risk profile and improving the management of batteries through their lifespan the aim is to reduce the number of fires that are occurring, particularly in the waste collection process and at recycling facilities. If this proves effective, this should benefit the whole e-waste ecosystem, and thereby benefit NTCRS stakeholders and players in the value chain.

2. The existing ACCC authorisation for B-cycle allows the scheme to address all battery products subject to market failure. Whilst its initial focus has been on small handheld batteries up to 5 kilograms the BSC has, as part of its scheme redesign, considered expanding the scope to include:

• any loose batteries (<60 kilograms) including portable energy storage.
• products with embedded batteries or all Small Electrical and Electronic Equipment (SEEE).

This latter category (SEEE) has also been mooted to fall under the proposed expansion of the NTCRS. It is imperative that the Federal Government, the BSC, Co-Regulatory Arrangements operating under the NTCRS and importers & brand owners of SEEE come together to develop the optimum system for end-of-life management for this sub-category of e-waste and that once implemented, it is supported through extensive public awareness and education programs. Clear auditable protocols will also be needed to mitigate against “double dipping”, particularly where embedded batteries are also captured under existing stewardship arrangements.

3. Batteries and e-waste are inextricably linked. In fact, by definition, e-waste is generally defined as any product with a “cord or a battery”. Whilst Australia’s broader e-waste recycling sector has grown significantly over the past decade, in line with the introduction of the NTCRS, Australia’s battery recycling sector is still considered to be in its infancy. At present there are only a handful of recognised battery recyclers, a limited geographical spread and a reliance on sending commodities extracted offshore for refinement so they can re-enter the circular economy. If Australia increases the volume and range of batteries recovered, we may see a significant investment in e-waste recycling capacity and capabilities. This could offer e-waste services with more choice and greater competition.

Whilst many details are still unfolding, the continuing growth and influence of battery stewardship initiatives aligns with government policy and targets. They also provide complimentary actions that will improve Australia’s national e-waste ecosystem.