BCI RECYCLING RATE STUDY

TABLE OF CONTENTS

I. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11. METHODOLOGY

A. Total Pounds of Lead Recycled from Batteries . . . . . . . . . . 2

B. Total Pounds of Battery Lead Available for Recycling

1. Domestic Battery Shipments . . . . . . . . . . . . . . . 3

2. Battery Imports and Exports . . . . . . . . . . . . . . . 3

3. Vehicle Imports and Exports . . . . . . . . . . . . . . . 4

4. 4

5. Notes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Scrap Lead and Used Battery Imports and Exports . .

111. RECYCLING RATE WORKSHEET

A. Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B. Footnotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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BCI RECYCLING RATE STUDY 1

1. INTRODUCTION

The National Recycling Rate Study, commissioned by Battery Council International (BCI), ~-

is conducted annually and is designed to calculate the recycling rate of domestic lead- acid batteries.’ The first study was conducted in 1990 and found the recycling rate of domestic lead-acid batteries to be 88.6%, 91 .O% and 95.3% for the years 1987, 1988 and 1989 respectively. The 1990 domestic lead recycling rate was calculated at 97.8%, the 1991 rate at 96.8%, the 1992 rate at 94.4% and the 1993 rate at 92.9%.2 This year’s study has determined the 1994 domestic lead recycling rate to be 98.2%.3

Part II of this report includes a review of the methodology used to determine the 1994 domestic lead-acid battery recycling rate. Part 111 contains the data from which the 1994 recycling rate was calculated and footnotes listing sources from which the data were obtained.

II. METHODOLOGY

The National Recycling Rate Study is conducted by the Market Research & Statistics Division of Smith, Bucklin & Associates, Inc., Chicago, Illinois. The national lead battery recycling rate (R) was calculated by dividing the total pounds of battery lead recycled (LR) by the total pounds of battery lead available for recycling (LA) in the United States. The ratio is as follows:

R = (LR/LA) x 100.

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l/Battery Council International is a not-for-profit trade association whose members are engaged in the production of lead storage batteries for automotive, marine, industrial, stationary, specialty, commercial and consumer uses. BCl’s members also include entities engaged in the reclamation and recycling of used lead batteries. BCI represents 99% of the nation’s domestic lead battery manufacturing capacity and 84% of the nation’s lead battery recycling capacity.

2/Copies of the previous National Recycling Rate Study reports can be obtained from Battery Council International, 401 North Michigan Avenue, Chicago, Illinois 6061 1-4267.

3/Since approximately 80% of the annual consumption of lead in the United Stated is used to produce lead- acid batteries, BCI has developed a comprehensive methodology to track the annual rate of lead-acid battery recycling. Although BCI believes this methodology to be quite thorough, BCI is currently working with the U.S. International Trade Commission (ITC) and other industry groups to more accurately describe the batteries imported into and exported from the United States. This continuing effort to improve the data needed to calculate the recycling rate will provide a better estimate of the actual rate of battery recycling.

BCI would like to thank the U.S. Department of Commerce and U.S. Bureau of Census for their efforts which were instrumental in improving recordkeeping for battery imports and exports and correcting the misclassification of the ‘scrap lead imports and exports.

BCI RECYCLING RATE STUDY 2

A. Total Pounds of Lead Recycled from Batteries

To find the total pounds of lead recycled from batteries, questionnaires were sent to all secondary lead smelters. The data gathered from the questionnaires indicated the total pounds of lead recycled from batteries at U.S. smelters. This total includes lead from whole batteries purchased, lead from tolled batteries, and lead from battery scrap purchased from independent battery breaker^.^

All starting, lighting and ignition (SLI) and industrial batteries are included in this analysis. However, since the secondary lead smelters record the receipts of batteries by weight rather than by type, it is impossible to determine the recycling rate for each category of battery.5

B. Total Pounds of Battery Lead Available for Recycling

When calculating the total pounds of lead available for recycling, the following data were included in the equation: 1) domestic battery shipments, 2) new battery imports, 3) imports and exports of vehicles containing a battery, and 4) imports and exports of scrap lead and used batteries.

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4/Battery breakers sell battery lead to secondary lead smelters and to remelters. Remelters melt metallic lead components from batteries (e.g., lead posts and straps), form it into ingots, and then sell it to battery manufacturers or other lead users.

Data on lead processed by remelters was not included in the analysis as the number of remelters and the amount of lead they recycled from batteries is not sufficient enough to include them at this point in time. As the number of remelters recycling battery lead increases, they will be included in future recycling rate calculations.

5/When a smelter receives a truckload of batteries, it weighs the truck with and without the batteries to determine the net weight of the shipment. After determining the types of batteries received, the smelter multiplies the weight of the shipment by a predetermined factor to identify the amount of battery lead received for recycling. The predetermined factors are adjusted annually as a result of a comprehensive audit.

BCI RECYCLING RATE STUDY 3

1. Domestic Battery Shipments

Domestic battery shipments for SLI batteries were obtained from BCl’s own statistical database.6 Since the SLI data is in units, an average lead weight was applied to each battery category to determine the total pounds of lead available for recycling from that category. In addition, average battery life must be taken into account when identifying the number of batteries available for recycling. For the purpose of this study, a battery becomes available at the expiration of its average operating life. For example, a passenger car battery has an average life of four years, whereas a motorcycle battery has an average life of two years. Thus, when calculating the 1994 recycling rate, 1990 domestic battery shipments were used for passenger car batteries, and 1992 battery shipments were used for motorcycle batteries. The SLI batteries included in the analysis are:

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.Passenger Car and Light Commercial

.Truck and Heavy-Duty Commercial

.Tractor .Aircraft =Marine . Military =General Utility . Miscellaneous’

.Golf Cart . Motorcycle

BCI does not have historical data on domestic battery shipments of industrial batteries. Thus, to determine the amount of lead available for recycling from these batteries, BCI surveyed the manufacturers to obtain the amount of lead used in the production of motive power batteries and stationary batteries in the relevant years.

2. Battery Imports and Exports

Exports of new batteries did not need to be taken into account since domestic shipment data already excludes battery exports. Data on imports of new batteries were obtained from the Department of Commerce (DOC). To equalize the import data and recycling time period, 1990 imports of passenger car batteries and 1992 imports of motorcycle batteries were used in calculating the 1994 recycling rate.

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6/BCI collects data regarding domestic shipments of SU batteries on a monthly basis from its members. BCl’s database includes battery shipment figures back to 1942.

7/This category represents specialty automotive batteries which are used in such applications as floor sweepers, trolley cars and mine cars.

BCI RECYCLING RATE STUDY 4

2. Battery Imports and Exports (continued)

The precise quantity of lead contained in the imports of small sealed and consumer batteries cannot be determined because this data is contained in a generic category of the Harmonized Tariff Schedule entitled “Lead-acid Type Storage Batteries, Other.” The types and weights of the batteries contained in this category cannot be determined with any certainty, since it is a catch-all for any battery which does not fit into the listed categories. Thus, a lead weight cannot be assigned to these imports. Consequently, these battery imports had to be excluded from the analysis.*

3. Vehicle Imports and Exports

Data was collected on the imports and exports of vehicles known to contain a battery when shipped into or out of the United States. The imports and exports of passenger cars, trucks, and buses were obtained from the Motor Vehicle Manufacturers Association. Imports and exports of motorcycles were collected from the DOC. All data were adjusted for each battery category’s average life and assigned an average lead weight.

4. Scrap Lead and Used Battery Imports and Exports

Imports and exports of lead waste and scrap and used batteries were obtained from the DOC and Statistics Canada.

Lead Waste and Scrap: Officials from the Bureau of Mines and DOC stated that, in their best professional judgment, 90% of the U.S. imports and exports of lead waste and scrap represent battery lead.’ Therefore, data reported by gross weight in the scrap lead category were multiplied by 90% to identify the amount of battery lead represented by the category.

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8/Approximately 80% of the U.S. consumption of small sealed lead batteries is imported, and it is thus believed that this generic category primarily represents small sealed lead batteries. However, the amount of lead contained in imported small sealed batteries represented approximately one percent of the lead available for recycling. Hence, their exclusion from the analysis does not have a material impact on the results of the study. Nonetheless, in order to include the small sealed and consumer batteries in future recycling rate calculations, BCI petitioned the ITC for a more detailed breakdown of this category. A petition was filed in 1993 and a partial breakdown was received, however, it did not address small sealed lead batteries. Once these data are broken out, BCI will be able to include small sealed and consumer batteries in all future recycling rate calculations.

S/Source: Conversation with Mr. William Woodbury (now retired), Lead Specialist, U.S. Bureau of Mines, (November 6, 1990). Conversation with Mr. David Larrabee, International Trade Specialist, U. S. Department of Commerce, (March 22, 1991).

BCI RECYCLING RATE STUDY 5

Used Batteries: For the purpose of this analysis, all used battery data reported in units were multiplied by 19.7, the average lead weight of a passenger car and light commercial battery in the year 1990. Used battery data reported by gross weight was multiplied by 50%, the estimated lead weight of an undrained passenger car or light commercial battery; or 65%, the estimated lead weight of a drained passenger car or light commercial battery. It is assumed that all batteries exported to and imported from Canada and Mexico were shipped undrained, and all batteries exported to and imported from all other countries were shipped drained.

5. Notes

U.S. and Canadian Import/Export Classification System The U.S. Census Bureau and Statistics Canada met in March 1994 in an effort to harmonize further Canada's classification system with the Harmonized Tariff Schedule in the United States. Currently, in response to a petition by BCI, the HTS contains several specific categories of lead-acid batteries. In contrast, the Canadian classification system contains fewer categories of lead-acid batteries. Canada recently agreed to modify its system to be consistent with the U.S. system, effective January 1995.''

Average Lead Weights for Automotive Batteries Since 1990 the major battery manufacturers have been surveyed periodically to identify the weight of lead in the various automotive batteries they produce. As explained earlier, an average lead weight is applied to each SLI battery category to determine the total pounds of lead available for recycling from automotive batteries. In this study, the average lead weights were updated based on the lead weights obtained during the year the batteries were manufactured.

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10/Source: Conversation with Ms. Phyllis Allen, U.S. Bureau of the Census (April 1, 1994).

BCI RECYCLING RATE STUDY 6

RECYCLING RATE WORKSHEET

The following pages contain the worksheet from which the 1994 recycling rate was calculated and footnotes listing sources from which the data were obtained.

BCI RECYCLING RATE STUDY 7

AUTOMOTIVE: 91

TOTAL POUNDS OF LEAD IN BATTERIES CONSUMED DOMESTICALLY: I 2,125,756,438 I

LEAD RECYCLED 113 FROM BATTERIES: 1 1. 836,763,923 11 Ibs.

I 2,125,756,4381 + 24,043,484 - 279,980,361 = I[ 1,869,819,561 11 Ibs.

1994 117 LEAD RECYCLED

RATE LEAD AVAILABLE: RECYCLING = ------ 1,836,763,923

1,869,819,561 98.2% I - -----..-.. -

BCI RECYCLING RATE STUDY 8

B. Footnotes

11 Source: BCI Lead Content and Expected Life by Battery Type Survey (for automotive batteries). Collected for the years 1990 - 1994.

Note: The average life for industrial batteries was developed in consultation with industrial battery manufacturer experts.

2/ “Year of Manufacture” was computed by subtracting the average life of the battery from the year recycled.

31 Source: Department of Commerce HTS # 8507.100030 (BATTERIES, LEAD-ACID, PISTON ENGINE, 12V, =<6KG) - 1992 Import Data HTS # 8507.100060 (BATTERIES, LEAD-ACID, PISTON ENGINE, 12V, >6KG) - 1990 Import Data

Note: Department of Commerce does not separate battery imports by product type.

4/ Source: Motor Vehicle Manufacturers Association of the United States, Inc. (1990 data for Passenger Car Imports, 1991 data for Truck and Bus Imports).

Source: Department of Commerce, 1992 Import Data (for Motorcycle Imports). HTS # 871 1.100000 (MOTORCYCLES [INCL MOPEDS], PIST, ENG, CYL, NOT, EXC 50 CC) HTS # 871 1.200030 (MOTORCYCLES EXCEEDING 50 CC, NOT EXCEEDING 90 CC) HTS # 8711.200060 (MOTORCYCLES EXCEEDING 90 CC, NOT EXCEEDING 19OCC) HTS # 871 1.200090 (MOTORCYCLES EXCEEDING 190 CC, BUT NOT EXCEEDING 250) HTS # 871 1.300030 (MOTORCYCLES EXCEEDING 250 CC, BUT NOT EXCEEDING 290) HTS # 871 1.300060 (MOTORCYCLES EXCEEDING 290 CC, NOT EXCEEDING 490 CC) HTS # 871 1.300090 (MOTORCYCLES EXCEEDING 490 CC, NOT EXCEEDING 500 CC) HTS # 871 1.403000 (MOTORCYCLES EXCEEDING 500 CC, NOT EXCEEDING 700 CC) HTS # 871 1.406030 (MOTORCYCLES EXCEEDING 700 CC NOT EXCEEDING 790 CC) HTS # 871 1.406060 (MOTORCYCLES EXCEEDING 790 CC NOT EXCEEDING 800 CC) HTS # 871 1.500030 (MOTORCYCLES EXCEEDING 800 CC NOT EXCEEDING 970 CC) HTS # 871 1.500060 (MOTORCYCLES EXCEEDING 970 CC) HTS # 871 1.900000 (MOTORCYCLES [INCLUDING MOPEDS], NESOI)

BCI RECYCLING RATE STUDY 9

B. Footnotes (continued)

51 Source: Motor Vehicle Manufacturers Association of the United States, Inc. (1990 data for Passenger Car Exports, 1991 data for Truck and Bus Exports).

Source: Department of Commerce, 1992 Export Data (for Motorcycle Exports). HTS # 871 1.100000 (MOTORCYCLES [INCL MOPEDS], PIST, ENG, CYL, NOT, EXC 50 CC) HTS # 871 1.200000 (MOTORCYCLES [INCL MOPEDS], CYCL, EXC 50 CC, NT 250 CC) HTS # 871 1.300000 (MOTORCYCLES [INCL MOPEDS], CYCL, EXC 250 CC, NT 500 CC) HTS # 871 1.400000 (MOTORCYCLES, CYCL, EXC 500, NT 800 CC) HTS # 871 1 SO0000 (MOTORCYCLES, CYCL, EXCD 800 CC) HTS # 871 1.900000 (MOTORCYCLES [INCL MOPEDS], NESOI)

Note: Vehicle imports/exports are included for those vehicles known to contain a battery when shipped. Virtually 100% of cars and trucks contain a battery when they are importedlexported (otherwise they would be unable to move them)-per Ray Kubis,

Most motorcycles contain a battery when importedlexported - per Motorcycle Industry Council (January 1991). Generally, forklifts do not contain a battery when importedlexported - per Clyde Elium, East Penn Mfg. Co., Inc. (January 21 , 1991).

Johnson Controls Battery Group, Inc. (1989).

6/ Batteries Consumed Domestically is found by taking domestic battery shipments, plus battery imports, plus vehicle imports and subtracting vehicle exports.

7/ Source: BCI Surveys of Lead Content (Weight) and Expected Life by Battery Type.

8/ Lead in Batteries Consumed Domestically is found by multiplying the Batteries Consumed Domestically (in units) by the Average Lead Weight for each product category.

The Lead Consumed in Motive Power and Stationary Batteries was collected in pounds and did not need to be converted from units.

9/ Source: BCI Monthly Shipment Report.

l o / Actual shipments of motorcycle, aircraft, military and all other batteries are confidential. However, the data has been included in the calculations.

Miscellaneous and All Other batteries generally include specialty automotive batteries; Le. , floor sweeping, trolley car and mine car batteries.

BCI RECYCLING RATE STUDY 10

B. Footnotes (continued)

1 l / Industrial Battery Manufacturer Survey, Motive Power Batteries. Conducted 1990. Participants: Battery Builders, Inc.

Bulldog Battery Corporation C&D Charter Power Systems Crown Battery Manufacturing Co. Douglas Battery Manufacturing Co. East Penn Manufacturing Company Electruk Battery Enterprises, Ltd. GNB Batteries, Inc. KW Battery Company Pilot Batteries, Inc. PowerFlow Systems, Inc. State Battery Company, Inc. Trojan Battery Company Yuasa Exide, Inc.

12/ Industrial Battery Manufacturer Survey, Standby (Stationary) Batteries. Conducted 1990. Participants: C&D Charter Power Systems

GNB Batteries, Inc. Johnson Controls, Inc. State Battery Company, Inc. Teledyne Battery Products Yuasa Exide, Inc.

13/ Secondary Lead Smelter Survey. Conducted 1995. Participants: The Doe Run Company

East Penn Manufacturing Company Exide Corporation General Smelting & Refining GNB Incorporated Gopher Smelting & Refining Company Gulf Coast Lead Company Refined Metals Corporation RSR Corporation Sanders Lead Company Schuylkill Metals Corporation

BCI RECYCLING RATE STUDY I 1

B. Footnotes (continued)

14/ Source: Department of Commerce, 1994 Import Data. HTS # 7802.000030 HTS # 7802.000060 HTS # 8507.1 00020 HTS # 8507.200020

(LEAD WASTE AND SCRAP FROM LEAD-ACID BATTERIES) (LEAD WASTE AND SCRAP NOT FROM LEAD-ACID BAlTERIES) (BATTERIES LEAD-ACID PISTON ENGINE USED RECVRY) (LEAD ACID STORAGE BATTERIES USED NESOI RECVRY)

15/ Source: Department of Commerce, 1994 Export Data. HTS # 7802.000030 HTS # 7802.000060 HTS # 8507.1 00020

(LEAD WASTE AND SCRAP FROM LEAD-ACID BATTERIES) (LEAD WASTE AND SCRAP NOT FROM LEAD-ACID BATTERIES) (LEAD-ACID BATTERIES USED FOR THE RECOVERY OF MET)

HTS # 8507.200020 (LEAD ACID BATTERIES NESOI USED FOR RECOVERY METL)

16/ Battery Lead Available in the U.S. for Recycling is found by taking the Total Pounds of Lead in Batteries Consumed Domestically, plus the Battery Scrap Lead Imports and subtracting the Battery Scrap Lead Exports.

17/ The 1994 Recycling Rate is found by dividing the total pounds of Lead Recycled from Batteries by the total pounds of Battery Lead Available in the U.S. for Recycling.