BSC Board announces action to charge up battery stewardship

The Battery Stewardship Council (BSC) Board convened in Canberra last week and
agreed to adjust the rebates for the collection, sorting and processing of batteries. The change will include an 8.4% increase as of 1 July to be accommodated within the current levy regime. A further review of the rebates will be considered for 1 January 2025, with
any adjustment dependent on revenue being available from increased imports or
new participants in the Scheme.

This decision was made in response to the need to stabilise the Scheme in the short-term, in advance of the upcoming review, and was enabled by the increase in import volumes in the last quarter. This adjustment is made based on a recognition that the economic climate has placed pressure on the network as a result of changes since the rebates were set. Since the rebates were set in 2019, the Consumer Price Index has increased 16.8% and commodity prices have plummeted, for example, the value of lithium black mass has decreased 62%.

The BSC Board endorses path forward for
B-cycle 2.0

B-cycle 2.0 is coming to life, with the recent endorsement by the Board of the proposal to move to a eco-modulated levy and rebate model. The focus was on future-proofing the Scheme to deliver our mission to create a circular economy for batteries and address the changing risk profile of batteries.

Several key decisions were made in support of the proposed redesign of the Scheme, which will form the basis of industry consultation and application to the ACCC for re-authorisation over the coming months.

Redesign of the Scheme to focus on sustainability outcomes
The Board agreed to include in the new model a greater focus on sustainability
outcomes to ensure the Scheme is able to:

• manage fluctuations in economic variables such as import volumes and commodity values
• enable responsible management of changing products and chemistries
• improve environmental and circular economy outcomes
• increase funding for button battery safety and awareness
• invest in lithium battery safety, including recognition of changing regulatory requirements for lithium battery storage and transport
• significantly increase diversion of batteries from the general waste and recycling sector through awareness and incentives
• cover the cost of collection and sorting, while also delivering efficiencies over time
• recognise the different cost/revenue streams associated with processing different chemistries.

Adoption of modulated levy/rebate model

The proposal includes a move to a modulated levy and rebate system based on full cost
recovery. This model would distinguish between the different batteries and chemistries, 
including button batteries, alkaline, lithium-ion, lithium primary, lithium iron phosphate,
and other problematic chemistries.

Annual review process

BSC will prepare an annual plan identifying annual levy commitment, sustainability
outcomes to be achieved, the collection forecast, current chemistries, risk levels and
required controls; as well as changes to rebates based on publicly available indices. Changes to the levy and rebates will be scheduled at the same time each year to provide
certainty for those liable.

Consultation process

BSC will proceed with industry and government consultation to obtain feedback and refine the proposed modulated model. The consultation process will include:

• discussions with ACCC to ensure the approach is consistent with re-authorisation requirements (mid June)
• development and circulation of a consultation paper (late June)
• meetings with industry and industry associations (July)
• face to face consultation forums (July)
• invitations for written submissions (July)
• refinement of the approach and additional consultation as needed (Aug)
• refinement of the proposed scheme design (Aug/Sept)
• preparation and submission of the ACCC re-authorisation application (Sept/Oct).

Regulation to address free riding

The Board was clear that significant change is needed to address the changing risk
profile of batteries and that for this to be accepted by industry there is a need for
corresponding regulation to address free riding within the Scheme.

For further details and to participate in the consultation process, please stay tuned for
upcoming announcements.

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