Australia’s $2.1B battery recycling sector pushes for national stewardship framework

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Image credit: Battery Stewardship Council

Australia’s battery recycling industry is already contributing billions of dollars to the national economy and could play a larger role in supporting domestic manufacturing and resource recovery, according to new figures highlighted by the Battery Stewardship Council.

Industry data released by the Association for the Battery Recycling Industry shows Australia’s battery materials recovery ecosystem currently contributes about $2.1 billion to the economy each year, supports 19,450 jobs and includes more than 45 facilities nationwide. The sector is projected to expand to $6.9 billion and support around 34,650 jobs by 2050.

Battery Stewardship Council chief executive Libby Chaplin said the figures highlight the broader industrial significance of battery stewardship.

“Used batteries are not just a disposal challenge – they are a strategic domestic resource stream that can help Australia build sovereign capability in critical minerals recovery, metals processing and circular manufacturing,” Chaplin said.

She said Australia has a potential advantage due to its resource base and existing industry capabilities.

“We have the mineral endowment, industrial capability, research expertise and national collection networks to recover more value onshore and strengthen our position in global battery supply chains,” Chaplin said.

The discussion comes as Chaplin joined industry representatives at Parliament House in Canberra on 12 March for a panel hosted by the Association for the Battery Recycling Industry on the future of Australia’s battery materials recovery sector.

Participants at the event emphasised the need for nationally aligned battery product stewardship, including a single product stewardship organisation covering all battery types.

“It is imperative that environment ministers move decisively to agree on an urgent pathway to nationally aligned regulation, leveraging the substantial foundational work led by the NSW EPA,” Chaplin said. 

“Failure to achieve national consistency will result in fragmentation that threatens the viability and success of battery stewardship outcomes.”

Chaplin said battery stewardship could also support broader economic and energy transition priorities.

“If Australia is serious about building more value onshore, improving energy security and growing advanced manufacturing, battery stewardship has to be part of the equation,” she said, adding that the work aligns with the federal government’s Future Made in Australia agenda and the National Battery Strategy.

Battery minerals such as lithium, graphite and nickel have been identified by the United States Geological Survey as important for economic and national security, reinforcing the role of materials recovery in future supply chains.

Chaplin said stewardship initiatives can help support the development of a circular battery economy.

“Effective stewardship creates a powerful opportunity to integrate our world-class raw-materials capability with emerging urban-mining pathways,” she said. 

“It is the front end of a stronger circular battery economy, helping secure feedstock, improve safety, reduce waste, and create the conditions for more domestic processing, reuse, repurposing and materials recovery.”

Through the B-cycle scheme, the Battery Stewardship Council said it has been building infrastructure and market foundations for battery collection and recycling since the program launched in 2022. 

According to the organisation, the scheme has collected $66.7 million in levies and returned $56.4 million to participants involved in collecting, sorting and recycling batteries.

The council said the program has also supported the recovery of 11,458 tonnes of batteries, including an estimated 477.4 million individual batteries and more than 92.6 million lithium-ion batteries that might otherwise have posed a fire risk within waste and recycling systems.

However, Chaplin said voluntary stewardship alone would not be sufficient to unlock the sector’s full potential.

“To unlock sovereign capability, industrial growth and energy security at scale, Australia now needs a nationally harmonised, mandatory battery stewardship framework that extends across all battery scopes,” she said.

“That is how we secure feedstock, address free-riders, improve safety, give industry the confidence to invest in onshore recovery and processing, and build the circular critical minerals and metals capability needed to capture more value from the energy transition here at home.”