NSW battery regulation moves from policy to action

With 241 battery-related fire incidents in NSW so far this year, it has never been more important that companies that make and sell batteries take responsibility for their products at end of life.

The Association for the Battery Recycling Industry (ABRI) has thus welcomed the NSW Government’s delivery of a major milestone in advancing battery regulation and producer responsibility, following the launch of the EPA’s public consultation on the draft Product Lifecycle Responsibility Regulation.

The draft regulations are planned to proceed under the Product Lifecycle Responsibility Act 2025 (now law in NSW), which enables the government to require that producers take responsibility for products they place on the market. Batteries are the first class of products proposed to be regulated.

“We’ve seen a rise in battery fires over recent years, driven by the growing number of products powered by lithium-ion batteries. These fires are hot, fast and incredibly difficult to put out,” said NSW Minister for the Environment Penny Sharpe. “I’m proud that NSW is the first state to move to regulate batteries. This regulation is crucial to reduce the risks batteries can pose when damaged, mishandled or improperly disposed of.”

The new regulations will apply to small, removable or rechargeable batteries under 5 kg as well as batteries used in devices such as e-bikes and e-scooters.

ABRI CEO Katharine Hole said this consultation is a pivotal moment as it sets out the details on how product owners comply and the rules around their participation.

“Mandatory producer responsibility is essential to address Australia’s growing battery waste, fire and safety risks. Importantly, long term it is about critical minerals and secondary metals production. This regulation is the mechanism by which we can move from voluntary goodwill to enforceable, nationwide action,” she said.

“We commend the NSW Government for leading this agenda. But the success of the scheme will depend on strong, transparent regulation that gives industry certainty and safeguards community safety. Timely implementation is an absolute necessity to rapidly drive improvements in battery disposal safety.”

Under the proposed regulations, it would be mandatory for battery brand owners to participate in a product stewardship scheme, paying a fee on their products. Third-party delivery groups would then be required to use those funds to create safer processes for battery disposal and handling.

Some of the proposed safety actions include:

• keeping batteries out of landfill by maximising the volume of batteries that are recovered;
• rolling out public education campaigns to improve awareness of battery risks;
• safe disposal and recycling of battery products via dedicated collection points; and
• reporting on the number of batteries supplied in NSW each year.
   

Battery brand owners who fail to comply with the regulation would face penalties of up to $880,000.

The draft regulation and supporting Regulation Impact Statement (open for feedback until 5 pm on 14 November 2025) provides the next layer of details for regulating batteries under the new scheme.

“NSW’s regulatory framework will set an important precedent for other jurisdictions. To support streamlined implementation, it is critical that a cookie-cutter model is adopted across Australia,” Hole said. “ABRI’s experience to date suggests that differences in regulatory details support non-compliance and add costs to business. By moving swiftly and collaboratively with a clear commitment to harmonisation, we can build a robust, safe and world-class battery producer responsibility system.”

B-cycle, Australia’s national battery recycling scheme developed by the Battery Stewardship Council (BSC), said the NSW Government’s decision to open public consultation on draft battery regulations marks a critical step towards safer, more responsible battery use and disposal across the country.

“This is an important milestone that shifts the conversation from policy to action,” said B-cycle CEO Libby Chaplin. “The regulations under consultation in NSW will set the benchmark for how product stewardship can deliver safer and more sustainable outcomes for batteries, protecting communities, the environment, and the waste and recycling industry.”

Sharpe added, “By acting now to make product stewardship mandatory for certain batteries, we can keep potentially dangerous products out of the general waste system — protecting people, the environment, and the waste and resource recovery sector from further harm.”

Image credit: iStock.com/LadadikArt