Strengthening Australia’s Battery Recycling Framework from 2025 and beyond

Intro

The B-cycle Scheme, led by the Battery Stewardship Council (BSC), has become a cornerstone of Australia’s national strategy for sustainable battery management. With the exponential rise in battery usage due to advancements in electronics, renewable energy storage, and electric vehicles, improper disposal of batteries has emerged as a significant environmental and safety issue. B-cycle’s primary goal is to create a closed-loop recycling system, diverting batteries from landfills while reclaiming valuable materials such as lithium, cobalt, and nickel. Since its inception, the scheme has recycled over 2.9 million kilograms of batteries in 2023–24, with the help of more than 5,200 drop-off points across Australia. This marks an impressive milestone, but also highlights the scope of challenges yet to be addressed.

Challenges in Battery Recycling and Market Gaps

One of the key issues facing the B-cycle Scheme is the fluctuating costs and supply chains associated with battery recycling. Factors such as the inconsistent volume of imports and rising operational expenses create financial uncertainty for recyclers. Additionally, the small scale of Australia’s battery recycling infrastructure makes it difficult to meet the growing demand for recycling services. The lack of capacity to handle diverse battery chemistries—such as lithium-ion, cadmium-based, and button batteries—adds complexity, requiring specialised sorting, handling, and processing technologies​.

Consultation and Stakeholder Engagement

To address these challenges, the BSC has engaged in extensive consultations with over 350 stakeholders, including industry representatives, policymakers, and environmental advocates. These consultations, conducted through forums in Brisbane, Melbourne, and Sydney, as well as online surveys, have helped shape the next phase of the scheme. One of the most significant outcomes of this engagement is the recommendation to implement eco-modulated levies, where fees are adjusted based on the environmental impact of different battery chemistries. This would incentivise the production and recycling of batteries with lower environmental footprints.

Proposed Regulatory Changes

The B-cycle Scheme is also pushing for stricter regulatory frameworks to address gaps in the current model. A draft Regulatory Impact Statement, expected by the end of 2024, will outline how stronger regulations can curb free riding and improve participation in the scheme. These measures include incorporating online sales into the regulatory net and integrating responsible battery management rules across Federal, State, and Territory governments. The proposed regulations aim to ensure that all businesses contributing to the battery market also contribute to its recycling.

Safety and Public Awareness Campaigns

With the rising incidence of fires caused by improperly disposed lithium-ion batteries, safety has become a central focus of the B-cycle Scheme. The council has launched several awareness initiatives, such as the “Never Bin Your Batteries” campaign, to educate the public on the hazards of improper disposal. These campaigns emphasise the importance of using designated recycling drop-off points and the risks associated with storing batteries incorrectly. State-based campaigns have also been introduced to promote behavioral changes through targeted messaging, aiming to reduce fire hazards at collection and recycling facilities.

Performance-Based Recycling Incentives

One of the innovative ideas being considered is the introduction of performance-based recycling rebates, modeled after Australia’s successful Used Oil Scheme. Under this model, rebates would be tied to recycling outcomes, incentivising companies to adopt more efficient and sustainable practices. This shift could also address financial concerns within the sector by creating a stable cost recovery mechanism, ensuring the long-term viability of the program. Such initiatives align with global best practices, as seen in countries like Germany, which has implemented advanced performance-based incentives to optimise its battery recycling infrastructure.

Expanding the Scope of B-cycle

The next phase of B-cycle, often referred to as “B-cycle 2.0,” aims to expand the program’s scope to include additional battery types and devices. This includes vaporisers and other emerging technologies that are becoming increasingly prevalent. The expanded scope also reflects the scheme’s adaptability to evolving market demands, as battery usage continues to diversify across consumer electronics, industrial applications, and renewable energy storage systems. By 2026, the scheme hopes to fully integrate these new categories while maintaining a competitive edge against landfill disposal costs.

Contribution to Australia’s Circular Economy

B-cycle aligns with Australia’s National Waste Policy Action Plan, which aims to achieve 80% resource recovery by 2030. By reclaiming valuable materials from batteries, the scheme contributes to the circular economy, reducing reliance on virgin resources and minimising environmental degradation. The inclusion of lithium-ion batteries in renewable energy storage systems further highlights their role in supporting Australia’s transition to cleaner energy sources. This integration is crucial for achieving the country’s broader sustainability goals.

Lessons from International Models

Globally, battery recycling schemes have proven to be effective in mitigating environmental risks. In Switzerland, for example, a national battery collection system ensures that nearly 70% of batteries are recycled annually. Similarly, Canada has implemented a producer responsibility model, where manufacturers are held accountable for the entire lifecycle of their products. These international examples provide valuable lessons for Australia, particularly in addressing challenges like free riding and ensuring financial stability within the recycling system.

What Lies Ahead

As B-cycle progresses, the Battery Stewardship Council is preparing for re-authorisation from the Australian Competition and Consumer Commission (ACCC). This process will involve refining the scheme to include free rider regulations, improved financial support for recyclers, and performance-based incentives. The council has urged all stakeholders to actively participate in shaping the future of the program, emphasising the importance of collective responsibility in ensuring the scheme meets Australia’s environmental and economic needs.

Conclusion

The B-cycle Scheme is more than just a recycling program; it is a critical component of Australia’s sustainability framework. By addressing challenges such as fluctuating costs, free riding, and safety risks, and by proposing forward-looking changes like regulatory reforms and performance-based incentives, the scheme is setting the stage for a more sustainable future. With continued stakeholder engagement and alignment with international best practices, B-cycle has the potential to become a global leader in battery stewardship, ensuring that Australia remains at the forefront of environmental innovation.