Positive Charge

The Scheme is run by the Battery Stewardship Council (BSC), is authorised by the Australian Competition and Consumer Commission (ACCC), and is accredited as a Federal Government Product Stewardship Scheme. B-cycle means robust accreditation, traceability and verification. It brings together battery importers, retailers, recyclers (and of course, everyday Australians) to create a circular economy for battery materials. This report outlines the scheme operation and outcomes for the first 6 months since the launch in January 2022.


B-cycle launched in January 2022 to give new life to dead batteries
B-cycle is an industry-led product stewardship scheme, providing benefits to both society and the environment. The Scheme is run by the Battery Stewardship Council (BSC), is authorised by the Australian Competition and Consumer Commission (ACCC), and is accredited as a Federal Government Product Stewardship Scheme.
B-cycle means robust accreditation, traceability and verification. It brings together battery importers, retailers, recyclers (and of course, everyday Australians) to create a circular economy for battery materials.
This report outlines the scheme operation and outcomes for the first 6 months since the launch in January 2022.
The commencement of B-cycle has been a very important milestone in the adoption of a circular economy for batteries in Australia.
Handheld batteries, including those in power tools, have been the initial focus for B-cycle, and are present in enormous numbers across homes, offices, factories, hospitals and schools in every community throughout Australia. Despite the fact that batteries are recyclable, battery mismanagement and inappropriate end-of-life disposal in our regular waste collection systems, has led to most going to landfill resulting in the waste of valuable resources and with significant safety, environment and health risks to us and future generations.
Through B-cycle, industry is seeking to provide all Australians with multiple opportunities to readily dispose of consumer and other batteries, ensuring they go to safe and secure recycling. Although this report highlights a strong initial response from the Australian community, it marks just the beginning of a longer journey to achieve our objectives of ensuring that batteries do not go to landfill and that we build a strong and vibrant domestic battery recycling industry.
From the solid foundation that is being built for consumer and power tool batteries, the Council is moving quickly in collaboration with a number of industry sectors to ensure the diverse range of other larger batteries are brought into the B-cycle Scheme as soon as practicable.

FOREWORD FROM THE CHAIR
Whilst the initial community and industry response has been very encouraging, we face a number of significant challenges that will have to be addressed. At an organisational level, the objective to maximise the Drop off point for battery collection and the need to expand our domestic recycling industry has certainly stretched our management system. We recognise this has presented issues for the recycling industry as it scales up and adjusts to a role in product stewardship with its increased focus on transparency and accountability.
Perhaps the greatest challenge for companies in the battery value chain will be adjusting to the rapidly expanding role that is emerging in the transport and energy storage sectors as communities and governments across the globe adopt new economic and resource usage policies to reduce greenhouse gas emissions. In these sectors battery utilisation is projected to grow exponentially over the next few decades and this places significant and increased pressure on resource use and the need for efficient recycling of valuable materials.
This growth is also leading to concerns about the impact of new energy systems on the long-term availability of resources and the economic and environmental impacts of the extraction and use of critical metals and other elements.
Lithium-based batteries are the clear focus of commercial attention at present but there are several other metallic and non-metallic elements that are critical to the function of battery systems and which provide the basis for alternative battery chemistries. The Council has commenced a dialogue with governments and the transport and sustainable energy industries on the framework for stewardship of these larger battery systems.
Collection systems for these very large batteries, the possibility of differing or exotic chemistries, the opportunity for reuse and the existence of proprietary battery take-back programs are some of the new challenges that will have to be addressed in the stewardship framework.
The foundation that has been laid this year through B-cycle provides an exciting opportunity for industry and governments to learn and adopt strategies to meet the energy challenge of the future. "The role for product stewardship with its underpinning philosophy of a circular economy has never been greater." Gerry and I, have shaped a program that does justice to our shared mission to inject a positive charge in the world of battery stewardship.

Where to next?
BSC is excited to capitalise on these early successes and challenges, and we will continue to improve our processes, address the burning issues presented by our participants, and ensure that we stimulate further expansion of the network and improve safety in all aspects of the battery lifecycle. Over the coming months, we will be releasing important research to understand lifecycle impacts, assess the market, and evaluate the economics of the Scheme.
We are moving to include e-bike and portable energy storage batteries in the Scheme and are now in discussions with the Battery Energy Storage Systems and Electric Vehicle sectors to explore how we might adapt this unique model to facilitate the stewardship of those batteries when they reach end of life.

CEO REPORT
I am pleased to release our first significant progress report spanning the first six months of the B-cycle Scheme's operation. Moving forward, this will be an annual report on our activities and outcomes.
Our intent is to be accountable to our members, government, and community, and to ensure that the Scheme delivers on its commitments and demonstrates value and efficiency.
The BSC team has worked diligently over the past year to translate the Scheme Design, which is authorised by the Australian Competition and Consumer Commission, into reality. Our aim has been to shape a distinctive stewardship model that gives Australians access to safe battery recycling options but also provides a new way of doing business in the Stewardship arena. Our primary motivation has been to create a scheme that radically increases battery collection and recycling in a safe and transparent manner.

B-cycle has initiated a paradigm shift
The B-cycle accreditation model provides a paradigm shift in stewardship arrangements. It showcases the rapid change that can occur if industry is mobilised to participate, rather than relying on the traditional service provider approach.
This report illustrates how we have used this leveraging model to successfully increase accessibility to battery recycling opportunities across the country, including the expansion of onshore recycling activities.

Battery brands are stepping up
Engagement of 90%+ of Australia's loose and power tool battery brands in the Scheme illustrates the importance and value of stewardship in the battery market. Not only is it delivering on corporate social responsibility objectives and attracting customers, it also points to the growing scarcity of battery metals and the importance of investing in a strong recycling sector that is able to secure quality materials for future generations.

Led by early adopters, the industry culture is changing
The Scheme launched at a time when it was easy to point to examples of illegal stockpiling, unsafe practices, facility fires, and lack of accountability. As a result, we introduced a rigorous accreditation process to assure ourselves and stakeholders that the batteries collected are safely and responsibly recycled.
We would particularly like to acknowledge the efforts of the early adopters and fast followers in the recycling industry, who contributed ideas and constructive input in the initial phase of developing and refining the collection tracking and rebate management process. Without you, this program would not have achieved such impressive outcomes in its first six months.

Creating something new comes with challenges
In February, with the help of Republic of Everyone and The Bravery, we arranged a virtual launch event as a response to COVID-19 restrictions. The Scheme was launched without the BSC having ever met face to face as a team! With the development of the rebate claim tracking and verification system we needed to adapt and evolve our approach to address user needs for efficiency and workflow, and maintain BSC's commitment to verifying the chain of custody for collected batteries through to recycling.
We appreciate that change is not always easy and that this process has required an investment of time and resources from participants. In this context, we commit to working with our partners to continually improve the efficiency of this process while retaining the integrity of the outcomes.

A successful launch was made possible by our partners and community
We would also like to acknowledge that the launch of the B-cycle Scheme has only been possible because of the hard work of many of our partners over a much longer timeframe. In particular, we have benefited from the support of our operational partners -Republic of Everyone, The Bravery, William Buck, Activ Group, and Equilibrium.
There are many BSC members and B-cycle participants that have supported our efforts, and while it is impossible to acknowledge them all, the following have provided significant contributions in this initial deployment phase: Mike Brendle, Peter Bruce, Margaret Donnan, Kylie Hughes, Craig McIntosh, Andrew Mackenzie, Ajay Singh, David Pattinson, Ben Pritchard, David Stout, Mariusz Surmacz, Katharine Hole, Andy Jackson, Spyro Kalos, Samantha Corrigan, Chris Tangey, Jocelyn Foong, Simon Cox, Doug Rowe, and Nick Dodd.
The outcomes of our discussions have enabled a scheme that is innovative in its approach, and which will have far-reaching impacts on battery recovery, industry development, safety, and innovation. It has often been the most difficult discussions and hardest questions that have led to the most interesting aspects of the B-cycle Scheme. I am also pleased and proud to acknowledge the hard work, dedication and professionalism of my team, Brett Buckingham, Jade Barnaby, and Kirstyn Krausz, who together with "I invite you to be part of our positive charge."

Why B-cycle Matters
Prior to the inception of B-cycle over 90% of Australia's used batteries ended up in landfill, leaching minerals into our soil and waterways and wasting finite resources.

RISK OPPORTUNITIES
The World Bank 2020 "Minerals for Climate Action" Report predicts that demand for battery minerals will jump by 500% by 2050, placing pressure on current supplies of raw battery minerals.
Establishing an independent and transparent stewardship scheme for used batteries now is essential for the recovery of finite minerals and to protect our energy security for generations to come.
With no stewardship scheme in place, battery-related fires in the general waste stream, recycling trucks, and material transfer stations have been on the increase.
B-cycle addresses the growing risk of battery fires by defining collection bin protocols, publishing safety fact sheets on storage and safe handling of used batteries, and supporting a growing network of over 3,200 Drop off points to safely recover used batteries.
Button batteries present a significant risk to human health with 1 child per month presenting to hospital after ingesting a button battery.
B-cycle begins implementation of our Button Battery Safety Strategy including publishing of safety information and internationally recognised instructional videos on how to avoid button battery dangers.
Early intervention in the form of stewardship has been needed to overcome these risks and harness opportunities. The Scheme enables funding to offset the cost of collection and recycling of batteries to encourage investment has been essential. B-cycle Matters, more than you might know.

MISSION & GOALS
In the first 6 months, we took big steps towards our mission To create a circular economy for batteries as a leading model for product stewardship.
We will do this by making B-cycle a successful and respected scheme that will conserve resources, reduce environmental and health impacts, and improve safety. Unlike battery recycling services or take-back programs, B-cycle provides independent assurance that all batteries collected are actually recycled with robust traceability and accreditation for all participants. B-cycle's transparent process gives confidence that batteries are safely managed, recycled and remade into something new.
Rather than establishing a new collection network, the B-cycle Scheme is designed to stimulate growth by leveraging existing collection channels and encouraging new entrants into the market. This is achieved by using a rebate model to offset the costs associated with collection, sorting and processing until such time as the volumes of batteries being collected improve the economics of battery recycling.

The B-cycle of Life
All industry participants sign a Battery Stewardship Commitment, with obligations ensuring safety and transparency across the battery lifecycle, and audits that verify compliance and give assurance of mineral recovery from used batteries.
Participants give purchase and supply preference to others in the network via enterprise-to-enterprise agreements to reduce free riders.

Importers
Provide funding to allow the Battery Stewardship Council to operate B-cycle + A levy on imported batteries is paid to the BSC + The levy collection is managed by an independent accountancy firm to ensure confidentiality + The levy is passed through the supply chain via product pricing

Retailers
Sell and promote accredited battery brands + The B-cycle brand provides confidence to consumers that responsible management and resource recovery occurs

Recycling Network
Rebates offset the cost of collection, sorting, and processing + The most significant barrier to an effective battery recycling industry is overcoming the cost of the collection and transport of used batteries + At least 75% of the Levy paid by importers goes directly to rebates to reduce the costs associated with collection, sorting and processing of used batteries

Resource Recovery
Ensuring finite materials are recovered for use in manufacturing new products + Over 95% of the materials in a battery can be recycled and recovered for reuse

Choice and certainty towards a sustainable future
The power to lead change is in the hands of all industry participants With the launch of B-cycle, battery importers can be confident that 100% of the Levy funds go directly to supporting the B-cycle Scheme and nothing else.
Industry can take solace that as their business grows, the B-cycle accreditation and audit processes ensure the environmental challenge of safely recycling used batteries is well in hand.
In the first 6 months, B-cycle has seen impressive participation with over 100 accredited organisations including 48 Importers and 28 Retailers.
There's still a long way to go for Australia to catch up with the rest of the world but B-cycle has a track record of securing broad industry participation for battery stewardship.
We estimate that 91% of loose battery imports are now covered by the Scheme, and 90% of power tool battery imports are covered, with contributions of over $10 million per annum in Levy payments.
With a strong launch of the B-cycle Scheme, consumers have actively used the 3,200+ accredited Drop Off points across all States and Territories.
As B-cycle unfolds and the collection and reprocessing of used batteries expands, importers will have transparency as to the final fate of the batteries they brought to market.

What happens to B-cycled batteries?
The following insights from our collection and recycling network explain what happens to batteries from the time they are collected through to when they are processed for recycling and reuse.
B-cycle is working with our accredited partners to better understand the recycling outcomes of our batteries, and as our Scheme evolves, we anticipate a higher level of detail to become available to share with our team, our partners and the community in our annual reports.

B-cycle has super charged the collection landscape
Within the first six months of the B-cycle Scheme's operation, we have seen 918 tonnes of batteries collected for recycling, from 3,200+ Drop off points across 8 states and territories. These batteries come from both cities and regional areas, with an increased regional collection rebate to support regional communities proving to be effective.

A doubling in collection rates
Collection rate is a traditional measure of success for product stewardship schemes, and since the launch of the B-cycle Scheme the collection rate of in-scope batteries has doubled. The below tables compares the collection rates of eligible B-cycle in-scope batteries prior to launch of the B-cycle Scheme (based on data from the Australian Battery Market Analysis Report 2018) and B-cycle 2022 Scheme data from our first six months of operation.

Type of batteries collected
The below Waste/ other out of scope batteries 3.8 Total 100 Regional collections

Incentivising the growth in collections
B-cycle is incentivising collections with a Metro/Regional rebate model designed to offset transport costs. To support national accessibility during start up the B-cycle, regional rebate currently covers regional areas as well as Tasmania, Western Australia, and Northern Territory. We are pleased to report that most of a battery is recovered for its metals. Batteries also include small amounts of plastics, only some of which is recyclable.

% 37 %
We have done an analysis of the two main battery types collected -lithium-ion and alkaline, which make up more than 85% of our battery collection and processing. Of these two battery types, 95% of their battery materials are recovered onshore, with only 5% (Black Mass) being exported for recovery.
Of the 95% of materials that are reprocessed onshore, greater than 90% go to a second life with less than 5% going to landfill.

BUTTON BATTERY SAFETY
In Australia, one child a month is seriously injured after swallowing or inserting a button battery, with some of them sustaining lifelong injuries or fatality.
In Australia and globally, there is a growing record of injuries and deaths from button batteries. In addition to this safety risk to children, button batteries present a further risk when disposed of via the household waste stream. Although the disposal of button batteries in the household waste stream is an effective method to reduce the health risk it does increase the risk for fires in the waste stream.

Button Battery Advisory Group
Over the past year, BSC has engaged subject matter experts to assist us in developing and implementing the Button Battery Safety Strategy which was a condition of the Scheme's authorisation by the Australian Competition and Consumer Commission. This group has provided much-needed insights into this very serious issue and their efforts and constructive engagement has been invaluable. Our thanks to:

THE B-CYCLE COMMUNITY
B-cycle was born of the belief that given the right framework, industry will engage, take charge, and address the challenging problem of used batteries Industry is leading the charge with more than 100 forward-thinking organisations, Government entities, and industry and community associations, voluntarily coming together to form the B-cycle community.
We applaud their support, contributions, and hard work, which has created a successful, voluntary, industry-led stewardship scheme.
In particular we wish to call out the following accredited Importers, Retailers, Collectors, and Recyclers.
By buying battery products and services from these organisations, you can be part of the B-cycle solution.