Lithium Australia NL (ASX:LIT, OTC:LMMFF) has been busy this morning announcing that investee Envirostream Australia Pty Ltd has signed a collection and supply contract in regard to used batteries with none other than Bunnings.
Envirostream, in which LIT has a 90% ownership interest, has also been issued an important planning permit for its battery recycling facility in Campbellfield, Victoria. The permit allows a change in land use to that of a materials recycling facility.
Envirostream and Bunnings
Envirostream has linked up with Bunnings to collect spent batteries from all Bunnings stores, after trialling its spent-battery collection services in several Bunnings stores within Victoria.
The companies have executed a Supply of Services Agreement – Battery Stewardship Scheme for the collection of spent batteries from its stores in Australia and selected stores in New Zealand.
This agreement comes ahead of the launch of the Battery Stewardship Scheme (BSS) to be rolled out by Australia's Battery Stewardship Council (BSC) in early 2022. It is expected to continue until June 30 2024, with Bunnings given the option to extend the agreement for a further 12 months.
The agreement has been made possible via the Australian Federal Department of Agriculture, Water and the Environment recently which issued Envirostream with a Basel Import Permit that allows for the import of 100 tonnes of mixed-waste batteries into Australia from New Zealand.
This permit, which allows Envirostream to service the Bunnings' New Zealand stores, is valid until October 14, 2022. Once imported into Australia, the waste will be recycled at Envirostream’s EPA-licensed Campbellfield facility and its Laverton North facility, which is in development.
The services include, but are not limited to:
- Provision and maintenance of suitable collection units for spent batteries;
- Collection and transportation of spent batteries from all Bunnings sites;
- Recycling of the spent batteries collected from Bunnings sites;
- Education and participation in marketing campaigns, in conjunction with Bunnings; and
- Reporting.
The company is pleased to announce that Envirostream will commence a service contract with Bunnings, which is leading the way in the provision of convenient collection points for spent batteries ahead of the BSS,” Lithium Australia managing director Adrian Griffin said.
“The creation of such a collection infrastructure is vital to improving Australia’s battery recycling rate and preventing spent batteries from being consigned to landfill."
Planning permit changes the game
This morning, LIT announced that Envirostream was issued a planning permit for its battery recycling facility in Campbellfield, Victoria.
The permit, issued by Hume City Council, allows a change in land use to that of a materials recycling facility.
“Envirostream – now the first mixed-battery recycler in Victoria to be fully permitted – seeks to reduce the volume of waste batteries relegated to landfill as it gears up to meet the introduction of the Battery Stewardship Scheme early next year," Griffin said.
Resource recovery aligns with Hume council
Envirostream and the Hume council have a mutual commitment to infrastructure essential to meet waste and resource recovery.
Given this close alignment, Envirostream applied to the council for a change in land use for the establishment and expansion of a materials recycling facility that had minimal impact on the environment and amenity of the area.
Envirostream and Council have worked closely to ensure its operation meets the requirements of the planning scheme, which led to approval of the change-in-land-use application.
Envirostream must now comply with the management plans it submitted with the original application for the permit to be fully realised.
Expanding its throughput
Envirostream now has the Hume City Council planning permit and recently issued EPA operating licence in its pocket, which gives it the formal approvals necessary to expand its operating throughput for the recycling of spent batteries at its Campbellfield facility.
Envirostream is the first company to achieve these approvals, specifically for the recycling of spent batteries.
This represents an important commercial prelude to the introduction of the national Battery Stewardship Scheme scheduled for implementation in January 2022.
The BSS is an industry-led initiative to provide free battery recycling to Australian consumers and counts Duracell, Energizer, Coles and Woolworths as industry partners working together to fund recycling and provide collection services for end-of-life batteries.