- Bunnings Group Limited (‘Bunnings’) has executed a Supply of Services
Agreement – Battery Stewardship Scheme (‘Agreement’) with Envirostream
Australia Pty Ltd (‘Envirostream’) for the collection of spent batteries from its
stores in Australia and selected stores in New Zealand.
- The Agreement – reached in anticipation of the launch of the Battery
Stewardship Scheme (‘BSS’) to be rolled out by Australia’s Battery Stewardship
Council (‘BSC’) in early 2022 – will continue until 30 June 2024.
- Bunnings has the option to extend the Agreement for a further 12 months
Implementation of Agreement
Lithium Australia NL (ASX: LIT, ‘the Company’) has a 90% ownership interest in Envirostream. The Company wishes to advise completion of the Agreement, a contract between Envirostream and Bunnings that allows for provision of services by Envirostream to begin immediately. Envirostream has already trialled its spent-battery collection services in several Bunnings stores within Victoria.
In preparation for the BSS, Bunnings and Envirostream have worked together to ensure drop-off points for spent batteries within the Bunnings infrastructure are not only convenient for customers but also facilitate efficient spent-battery collection by Envirostream.
The Agreement runs until 30 June 2024, at which time Bunnings has the option to extend it for a further 12 months. Envirostream will provide a Battery Product Stewardship Program (‘Program’) at all relevant sites across Australia and New Zealand.
The Program must incorporate all the requirements of the BSS for managing every type of battery covered by the BSS (‘Services’).
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,
The BSS is currently anticipated to be operational from 1 January 2022. Service fees
and service rebates for Australia are linked to the expected rebates payable on a per kilogram-collected basis from commencement of the BSS.
Basel Import Permit AUH21-020
The Australian federal Department of Agriculture, Water and the Environment recently issued Envirostream with a Basel Import Permit, which allows for the import of 100 tonnes of mixed-waste batteries into Australia from New Zealand. The permit, which allows Envirostream to service the Bunnings’ New Zealand stores, is valid until 14 October 2022. Once imported into Australia, the waste will be recycled at Envirostream’s EPA-licensed Campbellfield facility and its Laverton North facility, which is currently in development.
Comment from Lithium Australia managing director Adrian Griffin
“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. 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.”
The Company requests that the trading halt be lifted.