Commentary

Australia’s battery policy is stuck in waste mode – and it’s costing us

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The Australian Competition and Consumer Commission faces a crucial decision this September: whether to reauthorise Australia’s Battery Stewardship Scheme for another five years.

Following the draft determination and public consultation, the regulator’s final call will shape how Australian businesses manage battery costs and lifecycle value in an increasingly competitive global market.

At stake is whether Australia develops genuine circular-economy capabilities or remains locked into a waste-focused approach that leaves economic value on the table.

While the Battery Stewardship Council, the industry body that administers the scheme, submitted its March reauthorisation request proposing eco-modulated levy and rebate formulas with annual reviews, it exposes a fundamental gap: there are still no incentives or an accreditation pathway for repair services, refurbishment, or second-life applications that European companies are already monetising.

European markets are scaling battery repair and reuse. In the Netherlands, battery repair specialists such as NOWOS have built out high-voltage battery repair operations that extend the life of electric vehicles and energy storage systems before they enter waste streams.

NOWOS now operates facilities across the Netherlands, France and the UK, with expansion planned to Poland and Germany – evidence that repair business models can scale, capture value and defer end-of-life treatment.

The gap in Australia’s approach is systematic, not accidental. The Battery Stewardship Council’s reauthorisation materials continue to focus on collection, sorting and processing. Even when ‘circularity’ is discussed, it is framed largely around improved processing/recycling rather than extending product life.

The scheme’s rebate structure rewards collectors, sorters and recyclers, but provides no incentives for verified repair or refurbishment activity, nor recognition of second-life pack applications. In addition, B-cycle 2.0 excludes EV and grid-scale BESS systems, bypassing some of the highest-value repair and diagnostics opportunities.

That omission is notable given the Productivity Commission’s 2021 inquiry into right to repair, which examined barriers to repair and potential policy responses.

It also contrasts with European policy. The European Union’s Battery Regulation (EU) 2023/1542 links producer responsibility to lifecycle performance and mandates removability/replaceability for many batteries, creating market incentives for repairable design and for repair industries to develop.

Without similar signals, Australian businesses face policy headwinds that can drive up battery costs and shorten asset lifecycles.

As global battery markets mature, countries with robust repair and reuse capabilities will capture more value, while Australia’s current trajectory suggests importing those services rather than building local capacity – a strategic oversight for a nation rich in lithium resources.

Last year the Australian government launched its Future Made in Australia industrial policy to “maximise the economic and industrial benefits of the international move to net zero.” Yet the battery stewardship scheme largely overlooks precisely these opportunities.

Around the world, stewardship is evolving beyond simple collection to value-retention systems; without change, Australia risks remaining a waste-management model, contradicting national ambitions for climate-technology leadership while businesses pay in higher costs and missed opportunities.

The ACCC’s draft determination proposes granting authorisation for five years with conditions (including annual public reporting and an independent review by 31 July 2029), but none of these conditions require support for repair/refurbishment businesses or second-life markets.

With the current authorisation set to expire in September, the ACCC has an opportunity to require evidence of genuine circular-economy outcomes, not just waste-diversion metrics.

That would mean the Battery Stewardship Council demonstrating how the scheme will recognise repair pathways and second-life applications, and how eco-modulated levy settings will reward design for repairability alongside recycling performance.

Jacqueline Clements specialises in net-zero workforce development and completed a PhD in sustainable urban development.

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