Influx of old electric vehicle batteries will pose a significant challenge for Australia

Australia’s battery recycling industry is in “crisis” and unprepared for the influx of electric vehicles once they reach the end of their life, a federal inquiry has found.

Representatives from the automotive and recycling industry issued warnings at the inquiry into the transition to electric vehicles in Sydney on Thursday, also calling for a ‘battery passport’ for electric cars, similar to initiatives in Europe.

However, the federal government may have limited time to act on the recommendations. One recycling organization says the problem could become a significant challenge within six years.

The parliamentary inquiry focuses on many aspects of the transport transition, including the impact of electric cars on the electricity grid, opportunities to save fuel, the demand for chargers and the production and recycling of batteries.

Recycling companies already face a shortage of collection points and a lack of guidelines and standards for battery recycling, Australian Council of Recycling executive director Suzanne Toumbourou told the inquiry.

“The recycling and waste sectors… are in crisis due to improperly discarded batteries, which are causing fires in all types of facilities,” she said.

‘We do not have an adequate collection system and an adequate extended producer responsibility system for batteries.’

Ms Toumbourou said the country needs clear rules on the labelling, transportation and disposal of batteries, including a ban on dumping them in landfills, before local facilities are allowed to break down and process electric vehicle batteries.

There are few collection points for old batteries and a lack of regulations are causing problems, a hearing was told

“All batteries, including those in electric vehicles, should be regulated,” she said.

‘These standards should also apply to the handling, storage, transport and processing of batteries at the end of their life.’

Many electric vehicle brands have already partnered with companies to recycle old batteries, said Laurissa Mirabelli, head of communications at Polestar Australia.

While Australian facilities could extract valuable ‘black goo’ from batteries containing metals such as lithium, cobalt and graphite, they could not process the material on land.

In addition to ramping up recycling efforts, Australia should consider introducing regulations similar to those in Europe that label batteries and set a target for recovering critical minerals from batteries, Mirabelli said.

“It’s about transparency for customers,” she said.

‘There is no standard way to determine the climate impact of a battery or how the materials for that battery are sourced (in Australia), so the EU battery passport would be a really good standard for us to adopt here.’

A company in Victoria has started recycling electric vehicle batteries, but this is only done in bulk for export, Katharine Hole, chief executive of the Association for the Battery Recycling Industry, told the inquiry.

Hole says there is a significant opportunity for Australia to extract essential minerals from electric vehicles, but the industry needs standards and support quickly to meet the challenge.

“We have six years to really build this industry,” she said.

‘As the number of electric cars on the road increases in the coming years, they will also become eligible (for recycling).’

The inquiry is expected to hold public hearings in Melbourne, Brisbane and Canberra in August and September.