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Australia’s Battery Recycling Network Must Prepare for the Lithium Surge

Australia’s shift from lead acid batteries to lithium batteries is changing how batteries are collected, transported and recycled. Lead-acid batteries dominate today’s recycling system, but rapid growth in lithium-ion batteries will require major changes to infrastructure.

Australia generated about 198,000 tonnes of end-of-life batteries in 2024. Lead-acid batteries made up around 86% by weight, and about 90% were recycled. Lithium batteries remain a smaller share, but volumes will rise as electric vehicles, energy storage and other battery-powered technologies expand.

By 2050, end-of-life battery volumes are forecast to exceed 744,000 tonnes a year—nearly four times the 2024 level. Lithium batteries could account for 81% and overtake lead-acid batteries by about 2035. Australia’s network of about 5,500 collection points and 45 facilities must expand and adapt well before then.1

Different batteries present different risks

Under the Australian Dangerous Goods Code, many lead-acid batteries are Class 8 corrosive substances, while lithium-ion batteries and mixed loads containing them are generally Class 9 dangerous goods. The classifications determine storage, packaging and transport requirements. 

Lead-acid and lithium batteries must be kept separate because damaged lithium batteries can overheat or ignite. Facilities need separate storage, trained staff and safe handling procedures. Before transport, batteries should be checked for damage and secured; lithium terminals should be protected, and damaged units isolated.

Regulation begins at the collection point

Regulatory obligations apply even when a facility only collects and temporarily stores batteries.

In Victoria, dangerous-goods storage at transfer stations or material-recycling facilities may require a planning permit and an EPA licence. In New South Wales, it can trigger designated-development planning requirements, with EPA licensing applying once specified thresholds are reached.

In New South Wales, a lead-acid-only facility may operate under a higher licensing threshold. Accepting lithium batteries can lower that threshold considerably, so operators should review planning and environmental approvals before changing the batteries they accept.

Safe transport is part of the chain

Transport between collection points, consolidation centres and recyclers adds another layer of responsibility. Hazardous battery waste should be moved by appropriately licensed operators.

In Victoria and New South Wales, driver, vehicle, tracking and placarding rules may apply depending on battery type and quantity. Victoria uses its EPA waste-tracking system for reportable priority waste; New South Wales uses the Integrated Waste Tracking Solution for trackable waste.

Safe battery management is a shared responsibility. Collectors, site operators, transporters and processors must all understand their obligations.

Processing facilities face stricter requirements

Battery sorting and processing facilities generally face stricter planning and environmental controls than collection points. In Victoria, relevant facilities may require both a planning permit and EPA licensing.

In New South Wales, storage or processing may require designated-development planning assessment. Operations processing more than 1,000 tonnes a year may be treated as State Significant Development. Even mechanical sorting can count as processing and trigger stricter licensing thresholds.

Planning must begin now

Approving a new battery-recycling facility can be complex and time-consuming, involving planning assessments, EPA licensing, dangerous-goods rules, and fire and environmental controls. Our team has navigated these requirements in securing approval for Australia’s first lithium battery recycling facility, underscoring the value of early regulator engagement and a clear, technically robust approval strategy.

Australia’s strong lead-acid recycling system must now prepare for a more complex lithium waste stream. This will require suitable storage, training, compliant transport, stronger fire controls and new processing capacity. Facilities must also understand how accepting lithium batteries changes their planning and licensing obligations.

Early investment and careful planning will help Australia recover valuable materials while protecting people, communities and the environment.

To see how we can assist in securing planning approval for your next battery recycling or processing development, please contact us on (02) 8056 1849 or email us at admin@jacksonenvironment.com.au. More info at https://www.jacksonenvironment.com.au

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