Australia’s battery materials recovery industry could grow into a $6.9 billion sector by 2050 as electric vehicle battery volumes increase, according to a new national industry report.
The report, commissioned by the Association for the Battery Recycling Industry and prepared by Positive Economics Advisory, found the sector already contributes $2.1 billion to the national economy and supports about 19,450 jobs.
Researchers say the industry could expand to support more than 34,600 jobs by mid-century as battery use grows across electric vehicles, manufacturing equipment, and energy storage.
EV batteries driving future growth
The Industry Profile highlights the role end-of-life lithium batteries, including those from electric vehicles, will play in expanding the sector.
According to the analysis, Australia could benefit from a 36-fold increase in used lithium batteries over the coming decades, creating significant opportunities to recover critical minerals through recycling and materials recovery.
This process, often referred to as “urban mining”, focuses on extracting valuable materials such as lithium, nickel, and cobalt from spent batteries and returning them to the supply chain.
Opportunity to strengthen critical minerals supply
Katharine Hole said Australia already has strong foundations for developing a global battery recycling industry.
“Australia’s battery recycling sector is already delivering significant economic value, and the opportunity ahead is even greater,” Hole said.
“As battery use grows across electric vehicles and energy storage, we have a chance to build a strong domestic industry that keeps valuable materials in circulation and supports regional jobs.”
The report notes Australia already has established recycling capability for lead batteries and could build on that expertise to expand processing capacity for newer lithium-based batteries.
Policy settings key to sector growth
The report also identifies several policy measures that could help the sector expand, including nationally consistent mandatory producer responsibility for batteries and improved collection systems.
According to David Williams-Chen, battery recycling could become an increasingly important part of Australia’s circular economy.
“Our analysis shows that battery materials recovery is already an important and growing part of Australia’s circular economy,” he said.
“As battery volumes increase over the coming decades, the sector has the potential to expand significantly, supporting new investment, skilled jobs, and domestic capability in recovering critical minerals.”
The report was launched at an industry showcase at Parliament House in Canberra, attended by policymakers and representatives from across the battery supply chain.
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