The NSW government has begun public consultation on proposed regulations for battery handling and disposal.

Its consultation paper says waste and recycling businesses are finding it harder to obtain insurance or face rising premiums and exclusions due to the “significant risks” of battery fires.  

Material recovery facilities are now considered almost uninsurable, with some larger companies reportedly self-insuring.

The Product Lifecycle Responsibility Regulation would apply to removable or rechargeable batteries under 5kg and those used in devices such as electric bikes and e-scooters, and portable power banks.

Brand owners would pay a fee and be required to participate in a product stewardship scheme to fund safer processes for disposal and handling. Those that fail to comply would face penalties of up to $880,000.

Environment Minister Penny Sharpe says NSW has had 241 battery-related fires this year and it will be the first state to regulate batteries. It currently has a voluntary stewardship scheme.

“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,” she said.

The consultation is available here.