Austria is considering a cashback system for lithium batteries as part of efforts to reduce the growing number of battery-related fires in the waste sector and increase collection rates.

The proposal was discussed during a roundtable convened by Environment Minister Norbert Totschnig, bringing together public waste management companies and industry experts.

📊 According to the Austrian Association of Public Waste Management Companies (VÖA), the number of lithium batteries incorrectly disposed of in residual waste has quadrupled since 2016, while the current collection rate remains at just 13%.

"Improper disposal of lithium-ion batteries has become a growing public safety issue," said Ferdinand Koch, Managing Director of the Austrian Association of Public Waste Management Companies (VÖA). According to the association, the number of incorrectly discarded lithium batteries has quadrupled since 2016, driven by the rapid growth in battery-powered devices.

A study commissioned by VÖA found that a cashback scheme could raise battery collection rates beyond the EU target of 73%. Depending on battery size, consumers would receive €0.50 to €50 for returned lithium batteries. Researchers estimate the system could prevent up to €480 million in fire-related damage over five years while increasing the recovery of critical raw materials such as lithium and copper.

The proposal is expected to contribute to discussions on Austria's forthcoming Circular Economy Act and could become a model for wider European adoption.