Re.Group’s Canberra facility burnt down in 2022 and it had two fires at a Dandenong, Victoria facility over the past six months – each of which he said cost $250,000.

“Lithium-ion batteries in particular are disastrous for the sector as damage to the batteries causes runaway exothermic (heat producing) chemical reactions, which in turn leads to fires in trucks, recycling plants and landfills,” Re.Group’s submission said.

State and federal governments have acknowledged the need for reform but have not yet set a deadline for action.

A meeting of environment ministers in November last year agreed to allow Queensland to “lead work across jurisdictions that might inform future regulatory actions”.

Federal Environment Minister Tanya Plibersek was contacted for comment.

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National Waste Recycling Industry Council chief executive Rick Ralph said battery disposal regulations were going at “a snail’s pace compared to where we need to be”.

“It’s one of those things that has crept up and tipped the tipping point,” Ralph said.

Australian Council of Recycling chief executive Suzanne Toumbourou said embedded batteries posed an “existential threat” to the waste industry and greater regulation and an awareness campaign were needed.

“Any item with an embedded battery poses a hazard in waste and recycling streams,” she said. “We have no regulatory interventions to manage this. That results in a hell of a lot of fires.”

The industry issued its warnings as Plibersek declared the Albanese government would scrap a proposed levy on recyclable waste exports due to warnings that the so-called “recycling tax” would be counterproductive and drive more material to end up in landfill.

“We want to see more recycling, and avoid waste going into landfill, which this levy would have caused,” Plibersek said.

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