Lithium Valley (2018)

Australia has one of the lowest battery recycling rates in the world with only three percent of waste batteries recycled in 2017 with lithium batteries being sent offshore for recycling. 56 Currently there is only one company that recycles lithium ion batteries domestically, using a hydrometallurgical process to recover cobalt and nickel. 57 To encourage the recycling of all types of lithium ion batteries (rather than only high cobalt or nickel battery chemistries) the economic and regulatory conditions have to improve to create a cost incentive for recycling. To develop a self-sustaining recycling industry, assurance of recycling volumes is required. This would require importing from overseas, the establishment of a national collection network and recycling scheme to facilitate a centralised collection process and to redistribute battery waste to various battery recycling companies. A CRC for New Energy metals would also be expected to increase recycling opportunities. Due to the serious environmental, health and safety risks, and government deadlines for banning e-waste from landfill, the acceptance of lithium ion batteries in landfills needs to be discouraged. 58 Many such schemes are already in place in other countries, most notably in the EU 59 and Japan 60 where all producers of batteries are required to fund battery collection schemes, that covers both

the cost of the collection network and the cost of recycling their batteries. In Australia, the National Television and Computer Recycling Scheme and National Tyre Product Stewardship Scheme can be used as policy frameworks for an Australian battery stewardship scheme. The Australian Battery Recycling Initiative (ABRI) are currently negotiating with State and Federal Ministers for Environment to establish a national stewardship program for handheld batteries. 61 There is an opportunity to reduce both the funding costs of a national battery recycling scheme and the cost of battery metals, by integrating a domestic recycling industry with domestic lithium ion battery manufacturers. Establishing the means to develop a circular economy in the lithium sector would provide a competitive advantage for Australian clean energy exports. Importing e-waste and extracting the minerals also positively supports local industry and concentrates the knowledge locally. The development of specialised battery resource facilities will require significant State Government investment to address some of the short comings of the location. A clear strategy and business plan with a detailed project plan should be developed. Ideally, this should be led by experienced commercial people with complimentary industrial knowledge. The quantum of this financial assistance would need to be determined as part of the Business Case.

56 Energy Matters (2018), “Australia’s first lithium battery recycling plant opens in Victoria”, 02 May 2018, Energy Matters, https://www.energymatters.com.au/renewable-news/australia-lithium-battery-recycling-victoria/ . (Accessed: 07 May 2018) 57 Waste Management Review (2018), “Australia’s first lithium battery recycling plant opens”, 27 April 2018, Waste Management Review, http://wastemanagementreview.com.au/australias-first-lithium-battery-recycling-plant-opens/ . (Accessed: 01 May 2018) 58 Victoria State Government (2018), Waste Management Policy (e-waste) 2018 (Policy), Engage Victoria, https:// engage.vic.gov.au/application/files/2515/0837/0565/Draft_WMP_E-waste_FINAL.pdf . (Accessed: 01 May 2018) 59 European Union, (2013), DIRECTIVE 2006/66/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 6 September 2006 on batteries and accumulators and waste batteries and accumulators and repealing Directive 91/157/ EEC, Amended 20 November 2013, http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:02006L0066- 20131230andrid=1 . (Accessed: 01 May 2018) 60 Ministry of the Environment (2001), Law on the Promotion of Effective Utilization of Resources, Government of Japan, https://www.env.go.jp/en/laws/recycle/06.pdf . (Accessed: 01 May 2018) 61 Australian Battery Recycling Initiative (2015), ABRI urges Environment Ministers to support battery stewardship, 13 July 2015, http://www.batteryrecycling.org.au/wp-content/uploads/2015/07/150713-Call-for-Ministers-to-Support- Battery-Recycling.pdf . (Accessed 01 May 2018).

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