Insurance Costs and Challenges for Battery Recycling Businesses
Insurance premiums for battery recycling businesses in Australia have seen a significant increase of 100-200 percent in the past year, according to the Association for the Battery Recycling Industry. This surge in premiums can be attributed to the incorrect disposal of batteries and the fires that result from it. Katharine Hole, CEO of the association, stated that while recycling lithium batteries is inherently dangerous, a major factor behind the insurance premium hike is the improper disposal of batteries.
The challenge lies in managing batteries at the end of their life cycle. Many households struggle to find convenient and accessible drop-off locations for their used batteries. While some companies have implemented take-back programs, time-poor households often face difficulties in locating these options. This issue is particularly prevalent in regional areas where drop-off facilities are scarce. As a result, there are significant gaps in the disposal process that need to be addressed.
A Crisis of Incorrect Battery Disposal
Suzanne Toumbourou, CEO of the Australian Council of Recycling, described the current situation as a crisis regarding the incorrect disposal of batteries in Australia. Batteries that are discarded improperly have been causing fires in various facilities, including bins, trucks, material recycling facilities, metal recyclers, e-waste recyclers, and even in food and organic reprocessing and construction and demolition reprocessing facilities.
It is important to note that the term “batteries” encompasses a wide range of household products beyond loose AAs. Vapes, electric toothbrushes, kids’ light-up shoes, power tools, and household appliances that recharge or have self-generated movement all fall under this definition. Unfortunately, there is a lack of legitimate disposal pathways for these items throughout the country.
The Consequences of Incorrect Battery Disposal
Incorrect battery disposal has severe consequences, with over 10,000 fires caused by consumer batteries reported annually in Australia’s waste and recycling facilities. Shockingly, only 11 percent of these fires are handled by fire and rescue services, while the rest are extinguished by the sector itself. The damage resulting from these fires can be devastating. For instance, a recycling facility in Canberra suffered tens of millions of dollars’ worth of infrastructure damage due to a fire most likely caused by vapes.
Battery Recycling Is a Costly Endeavor
Despite the importance of battery recycling, the process is not self-sufficient but rather a cost for businesses involved in it. According to Katharine Hole, logistics costs pose the biggest financial burden for battery recycling, especially in Australia. Transporting batteries back to recyclers can be challenging and costly due to the dangerous goods classification. Stringent packaging, storage, and fire protection requirements further contribute to the overall expenses.
Furthermore, there is currently a lack of transparency in the process of manufacturers taking back batteries for recycling at the end of their life cycle. While some companies have committed to net-zero emissions and a circular economy, others are less clear about their responsibilities. Many companies are willing to do the right thing, but they face challenges when competing against cheap imports or other sectors.
In conclusion, the improper disposal of batteries poses significant challenges for the battery recycling industry in Australia. Insurance costs have skyrocketed due to the fires caused by incorrect battery disposal. The lack of accessible drop-off locations and transparent take-back programs further exacerbates the problem. It is crucial to address these gaps and establish a more efficient and comprehensive battery recycling system to mitigate the risks associated with incorrect disposal and protect the environment and communities from potential fires and damage.
