NSW paves way for mandatory waste battery recovery scheme as fires soar

The UNSW SMaRT Centre welcomes the approval by the NSW Government of a new mandatory waste battery recovery scheme to help address the fast growing and highly toxic and dangerous problem of end of life batteries.

This comes as the number of fires caused by batteries, in particular Lithium ion batteries (LiBs) prevalent in so many devices including e-bikes, soar to record levels, as reported by Fire and Rescue NSW which has been meeting with SMaRT to look at innovative solutions to waste batteries.

In its many policy submissions to both NSW and the Commonwealth governments around issues such as waste and recycling, creating a circular economy and management of critical materials, SMaRT has been emphasising the crucial role of using waste as a resource for remanufacturing to help achieve decarbonistion goals, and that mandatory, not voluntary, product end of life schemes to manage waste are essential to gain progress (as demonstrated with the failed REDcycle soft plastic scheme).

SMaRT Director Prof Veena helped launch the Australian Government-backed recycling scheme B-cycle that aims to make it easy for Australians to collect and recycle single use or rechargeable batteries such as alkaline or lithium batteries, with Veena emphasising the importance of recovering valuable materials from complex wastes such as via SMaRT Centre's green metal's recycling technologies as part of its ARC Microrecycling and Battery and other Wastes Hub.

Shocking impact of waste batteries

Fire and Rescue findings from its latest LiB report from its Alternative and Renewable Energy Technologies (SARET) Research Program are that:

  • The rise in the number of products and applications utilising the battery technology has been met with a steady increase in battery failures resulting in thermal runaway events and fires that are challenging for fire and emergency services, and sometimes tragic for fire victims.
  • About one in every 100 fires attended by Fire and Rescue New South Wales involves a LiB or battery device.
  • LiB fires increased 66% from 2022 to 2023
  • LiB fire injuries nearly tripled over the same period
  • LiBs were 4 times more likely to result in injury than all fire and explosion incidents attended.

The latest Hazardous Waste in Australia 2025 Report, released by the Federal Department of Climate Change, Energy, the Environment, and Water, found that: "Lithium-ion batteries, while not formally a hazardous waste, are creating enormous difficulties for the waste sector by starting fires in waste trucks and waste infrastructure. Policy solutions remain unresolved in most jurisdictions. Environment ministers nationally have acknowledged the ‘need for urgent reforms to product stewardship arrangements for batteries’."

What types of batteries will be regulated?

The EPA NSW says: "The Product Lifecycle Responsibility Regulation 2026 establishes a mandatory product stewardship scheme for batteries in NSW. This Regulation will help to increase the safe disposal of end-of-life batteries and reduce the risk of fires from their improper disposal."

These changes apply to small and removable batteries weighing less than five kilograms, such as AA and power banks. It also covers batteries in e-bikes and e-scooters, whether removable or not.

The following are defined as ‘regulated batteries’ under the Regulation:

  • A battery of the following sizes-
    • AAA
    • AA
    • C
    • D
    • 9 volt
    • 6 volt lantern
  • A button battery or button cell battery
  • A removable rechargeable battery weighing 5kg or less
  • A rechargeable battery used to power an e-micromobility device
  • A portable power bank weighing 5kg or less

If it is not practicable to remove a regulated battery from an e-micromobility device, the e-micromobility device is taken to be a regulated battery.

How will the reforms be implemented?

"It is the intent of the EPA to enter an agreement with a Product Stewardship Organisation(s) to administer the scheme. When there is an agreement it will be mandatory for brand owners who supply batteries into NSW to belong to a designated product stewardship organisation. "

"The Product Stewardship Organisation(s) will need to submit, and have approved by the EPA, an action plan detailing how they plan to deliver the scheme, including facilitating a comprehensive collection network, ensuring safety and raising public awareness around safe battery disposal."

The EPA will continue to provide updates to industry stakeholders. This will include what brand owners need to do to comply with the regulation.

The regulation is proposed to commence on 1 October 2026. Once the scheme starts, brand owners will be required to join and contribute fees based on the batteries they supply to fund the safe collection and recycling of batteries when they reach end of life.

Key features of the regulation include:

  • Dedicated battery drop-off points for the community
  • Public education to improve awareness of battery fire risks
  • Annual reporting on the number and types of batteries supplied in NSW
  • Improved transparency about types of batteries collected and the scheme’s performance

What will battery brand owners have to do?

It will be mandatory for brand owners who supply batteries into NSW to belong to a designated product stewardship organisation. There could be more than one product stewardship organisation which would administer and manage the scheme under the regulation, enforced by the NSW EPA.

The Product Stewardship Organisation/s will need to publish an approved action plan detailing how they plan to deliver the scheme, including facilitating a comprehensive collection network, ensuring safety and raising public awareness around safe battery disposal.

The EPA will continue to provide updates to industry stakeholders. This will include what brand owners need to do to comply with the regulation and how the scheme will work.