Peak Body Reports 200 Percent Surge in Insurance Costs for Battery Recycling Businesses
Fires caused by incorrect battery disposal were responsible for the increase in insurance premiums.
A peak industry body disclosed that insurance expenses pose a significant obstacle for battery recycling businesses in Australia.
During a hearing on the transition to electric vehicles on July 25, CEO Katharine Hole of the Association for the Battery Recycling Industry stated that insurance premiums for the sector had surged by 100-200 percent over the past year.
While acknowledging the hazards of recycling lithium batteries, the CEO highlighted that one major factor contributing to the rise in insurance premiums was the improper disposal of batteries and the subsequent fires they caused.
“How do you manage those batteries at the end of their life? Where can they be disposed of, as there are not always convenient drop-off solutions for households,” she mentioned.
Ms. Hole mentioned that although some companies offer take-back programs for their products, it becomes challenging for busy households to locate proper battery disposal locations.
She noted, “It’s simpler in urban areas, but in rural areas, finding a suitable drop-off point can be difficult, especially if you don’t want those batteries sitting in the car under the hot sun while waiting to dispose of them. There are many gaps that need to be addressed.”
A Crisis Linked to Inaccurate Battery Disposal
CEO Suzanne Toumbourou of the Australian Council of Recycling emphasized a crisis related to improper battery disposal in Australia.
She stated, “We are currently facing a crisis caused by incorrectly disposed of batteries, leading to fires in various facilities, including bins, trucks, recycling facilities, metal recyclers, e-waste recyclers, plastic reprocessing, and other sectors.”
Ms. Toumbourou explained that the term ‘batteries’ encompasses a wide range of household products, including vapes, electric toothbrushes, children’s light-up shoes, power tools, vacuum cleaners, and other items that generate light, movement, or sound.
Discussing the repercussions of improper battery disposal, she mentioned that consumer batteries instigate over 10,000 fires annually in waste and recycling facilities across Australia, with only 11 percent being extinguished by fire services.
Furthermore, damage from fires caused by incorrect battery disposal can be severe, such as a fire likely triggered by vapes at a recycling facility in Canberra that resulted in millions of dollars in infrastructure damage.
Battery Recycling Challenges
Ms. Hole informed the committee that battery recycling is not a self-sustaining process but rather an expense for businesses.
She mentioned, “The primary cost in battery recycling, particularly in Australia, is logistics. It involves transporting the batteries back to the recycling facility, which are considered dangerous goods, necessitating additional packaging, storage, and fire protection measures that add to the expense.”
Additionally, Ms. Hole expressed concerns about the lack of a transparent process in Australia for manufacturers to take back batteries for recycling at the end of their life cycles.
She explained, “While some companies have programs for battery return due to consumer commitments related to achieving net zero or adopting a circular economy, others are less clear. Several companies strive to do the right thing, but face challenges due to costs and competition.”
