A confluence of events is impacting all segments (automotive, industrial and steel casing) of the used lead acid battery recycling value chain pending the commissioning of the final round of new investment. This investment is projected to enhance capacity as well as capability to recycle industrial and steel casing lead acid batteries.
Key changes to the lead acid battery recycling supply chain include:
- Recent commissioning of new capacity in Western Australia and Queensland and development is underway on new capacity in Victoria. This is in addition to proposed investments at existing plants.
- Changing mix of used lead acid batteries with an increase in industrial and steel case batteries entering the market. Some of this is reportedly being driven by increased compliance activities limiting the amount of batteries that can be stored and supporting quick turnover to minimise stockpiles.
- Delays in expanding capacity for recycling lead acid batteries following the closure of the Australian Refined Alloys recycling facility.
- Regulatory limits on and changes in storage capacity across all parts of the supply chain as a stronger focus is put on safe and sustainable management of used batteries to minimise fire risks. This is occurring across all used battery types.
- COVID impacts on consumer behaviour, business operations and investments has added to value chain disruption, including: an increase in automotive batteries entering the recycling chain, the result of flat batteries during lockdowns; delays in investments; and operational impacts on staffing.
- Increased regulatory restrictions on transport of used lead acid batteries.
These changes are creating bottlenecks and the need for increased storage of used lead acid battery across the supply chain at a time when regulatory actions are restricting storage capacity. This requires immediate action to support safe and sustainable storage and recycling of lead acid batteries. To provide longer term investment certainty for all parts of the Australian value chain, the ongoing changes to the battery recycling industry regulatory environment also need to be clarified and settled.
The ABRI Executive Committee is seeking submissions from interested stakeholders on the causes of the current situation, the expected duration of the bottlenecks, options for addressing these challenges and other concerns (excluding pricing) which ABRI can assist address. In proposing solutions, stakeholders should give consideration to:
- How quickly a solution could be implemented
- How the solution will deliver:
- A safe, circular economy solution for used lead acid battery recycling pending the completion of investment projects supporting the ongoing expansion of the Australian battery recycling industry; and
- Lead acid battery recycling industry investment confidence and certainty.
Interested stakeholders can send submissions to info@batteryrecycling.org.au. Please make submissions as soon as practicable. The submission date closes on Monday 23 May. However, if you require more time to make a submission, please email the ABRI secretariat info@batteryrecycling.org.au prior to 23 May to advise when you will be sending in your submission.
To ensure transparency of the process, please support your statements with a publicly available evidence base. ABRI may publish submissions and share with the Executive Committee and governments if requested.
As an industry association, ABRI has obligations under the Competition and Consumer Act 2010 (‘the Act’) and the Executive Committee requests stakeholders not provide information, including pricing, which may breach anti-competitive behaviour requirements under the Act. Any stakeholder with concerns about industry practice and competition should refer these to the appropriate regulator. For further information visit, https://www.accc.gov.au/business/industry-associations-professional-services/industry-associations
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