New Report: High Recovery Rates Mask Australia's Tyre Recycling Circularity Failure

Australia generated 537,000 tonnes of end-of-life tyres last financial year, yet only 26% were reused or recycled, highlighting a massive opportunity for improved resource recovery, according to a comprehensive analysis released today by Tyre Stewardship Australia (TSA).  

The Material Flow Analysis Report: Are We There Yet? Australia's Journey Towards a Circular Economy on Tyres which tracks the journey of Australia's growing tyre consumption from import to final fate, reveals the fundamental failure of current approaches to achieving genuine circular economy outcomes. 

The report serves as Australia's authoritative five-yearly benchmark on tyre flows, providing the data foundation for policy development and industry investment decisions. Its methodology and data were reviewed and validated by Blue Environment, a leading sustainability consultancy specialising in data-driven environmental analysis.  

Tale of Two Sectors: High Recovery vs High Value 

The primary finding of the report is that Australia's tyre industry presents a tale of two sectors: passenger, truck and bus tyres with high recovery rates but poor circular outcomes, and off-the-road (OTR) tyres with low recovery rates but genuine commitment to valuable reuse and recycling when recovered. 

Of the 537,000 tonnes of all used tyres generated in Australia in 2023-24, roughly 353,000 tonnes (66%) had their resources recovered through either reuse, recycling or energy recovery. However, the report exposes dramatically different approaches between tyre sectors. 

Passenger, truck and bus tyres achieved a recovery rate of 87%, while off-the-road tyres used in mining and agriculture managed just 13%. The picture is even more stark when mining tyres are considered alone - less than 5% are recovered while the vast majority are buried onsite. 

“Australia's impressive 87% recovery rate for passenger, truck and bus tyres is masking an underlying failure to create genuine circular economy outcomes,” commented Tyre Stewardship Australia CEO Lina Goodman. “The most recent data from this report shows that more than half (53%) of these tyres are used for energy recovery, that is shipped offshore to be used as fuel in cement kilns and industrial boilers. And the picture is even more concerning for passenger tyres alone - while 88% are recovered, more than three quarters are used as fuel.” 

While the report shows that recycling rates across all tyre types have improved from 11% to 17% over five years, this progress pales against the scale of the challenge. Australia's domestic granulating and crumbing capacity of just 86,250 tonnes annually represents a fraction of what's needed for genuine circular outcomes. 

"It’s one thing to prevent tyres from ending up in landfills, stockpiles or being dumped – doing something useful with them is quite another," said Ms Goodman. Having end-markets for tyre-derived material is essential to support circularity. “Despite Australia’s tyre recyclers and processors doing what they can, without Government enforcing procurement guidelines that prefer recycled products, and stronger regulation, they are exposed to high risk export markets.” 

Mining Sector: Right Approach, Wrong Scale 

The latest data from mining sector presents a complex picture of excellence and failure. When mining companies recover tyres, they demonstrate a commitment to circular outcomes, prioritising repair and high-value recycling over convenient disposal for tyres worth up to $50,000 each. 

However, this approach applies to less than 5% of mining tyres, with an estimated 109,300 tonnes buried onsite in 2023-24 alone. Current regulations effectively exempt mining from standard waste disposal requirements that apply to every other industry, creating a regulatory double standard that undermines circular economy progress. 

"The mining industry does the right thing when they recover tyres; they understand that valuable assets deserve sophisticated management," said Ms Goodman. "But they shouldn't get a free pass to bury 109,000 tonnes annually onsite while every other industry faces strict waste disposal requirements. That's not sustainable, and it's not fair." 

Ms Goodman noted progress within progressive mining companies: "Although the overall recovery rate of mining tyres is low, we're seeing encouraging signs that mining companies are demanding – of themselves and their downstream partners – greater circular outcomes for the valuable resources contained in tyres. If this current trajectory continues, the mining industry will drive significant improvement in the reuse and recycling of tyres in Australia." 

Cross-Sector Learning: Combining the Best of Both Worlds 

The solution to Australia's tyre circularity challenge lies partly in each sector learning from the other's strengths.  

"Australia's accredited tyre recyclers should be commended for their pursuit of end-of-life tyre recovery in the passenger, truck and bus sectors," Ms Goodman said. "They've built collection networks and processing infrastructure that works, and proven that high recovery rates are achievable when there's commitment to proper stewardship.   

“The challenge is extending this success to the mining sector, which generates the heaviest tyres but has the lowest recovery rates. We believe it’s now time to give TSA-accredited recyclers the reins to support the OTR sector and show the world that Australia can set the pace in transforming how we manage these giant tyres."  

" At the same time mining companies treat recovered tyres as valuable assets to be optimised, not waste problems to be solved," Ms Goodman observed. "If the passenger, truck and bus tyre value chain adopted this mindset for the 382,000 tonnes of used tyres they generate annually, we'd see dramatically different circular outcomes." 

"Each sector has half the solution," Ms Goodman explained. "Mining knows how to create better circular economy outcomes but lacks recovery infrastructure. The passenger, truck and bus tyre value chain has mastered recovery logistics but needs to focus on circular value.” 

Government Must Mandate Real Solutions - Voluntary Measures Have Failed 

Based on the findings of the report, TSA is calling on the federal government to implement mandatory product stewardship. 

"Nothing will change unless government steps in with proper regulatory measures," Ms Goodman commented. "Every tyre we export for tyre-derived fuel is a missed opportunity for resource recovery, local jobs and investment," Ms Goodman said. "We have the collection systems, we're building the end markets, and we have companies committed to doing the right thing: we just lack the regulatory backbone to make it happen.” 

Ms Goodman concluded. "Now is the time to unlock the full potential of this industry and show that Australia can lead the world in tyre circularity - not just recovery rates, but genuine circular value creation." 

-ENDS- 

Further information: 

The Fate of Used Tyres  

Of the 537,000 tonnes of used tyres generated in 2023-24, the report reveals seven possible fates – with only a quarter (26%) contributing to materially circular outcomes through reuse and recycling:   

• Reuse (9%): Second-hand sales and re-treading, particularly strong for truck tyres (circular)  

• Recycling (17%): Converting tyres into new products like road surfaces and playground materials (circular) 

• Energy recovery (40%): Mostly exported as shredded fuel, primarily to India and Malaysia  

• Onsite burial (20%): Almost entirely mining tyres buried at mine sites  

• Landfill (9%): Formal disposal in licensed facilities  

• Stockpiling/dumping (4%): Including illegal dumping costing councils $6.5 million annually, with each cleaned-up dumped tyre costing nearly three times the cost of proper disposal  

• Burning (0.2%): Open burning without energy recovery  

Background on Tyre Stewardship Australia  

Tyre Stewardship Australia (TSA) is Australia’s tyre product steward established in 2014 to implement the national Tyre Product Stewardship Scheme (TPSS) – an ACCC-authorised industry framework to reduce the environmental, health and safety impacts of the 67 million Equivalent Passenger Units (EPUs) which reach their end of life in Australia each year.  

TSA’s vision is of a circular economy for end-of-life (EOL) tyres that contribute to a sustainable society. It works all along the tyre supply chain to minimise waste and increase value for government, industry, businesses, and consumers by:  

• Accreditation and Compliance: TSA accredits and monitors compliance of over 1,700 TPSS participants, including tyre manufacturers, retailers, collectors, and recyclers committed to sustainable practices.  

• Research and Market Development Funding: Working with levy contributors, TSA has invested up to $11 million in market development initiatives including research and development, and commercialisation of new productive uses for end-of-life tyres – transforming waste products into useful commodities, creating new industries and jobs while reducing environmental harm from illegal dumping.  

• ESG Tools and Services: TSA provides comprehensive environmental, social and governance tools including the Foreign End Market Verification platform – the only global system verifying Australian end-of-life tyres don't cause environmental or social harm at their final destination, and the Sustainable Outcomes Indicator star rating promoting best practice operations.  

Media Contacts  

TSA: Sandra Scalise, Director, 0491 272 721, sandra.scalise@tyrestewardship.org.au