The group charged with recycling batteries issued a warning about the practice on Tuesday as Australians clean up after Christmas, and a report found each home stored an average of 11 used batteries.
The B-Cycle battery stewardship scheme also called for more states to regulate e-bike and e-scooter battery recycling after the NSW government introduced new standards.
The organisation released figures in its Positive Charge annual report, revealing it had recycled more than 3.3 million kilograms of batteries in the last financial year, collecting 18.5 per cent of available batteries, up from 17.6 per cent in 2024.
Households in NSW and Victoria recycled the greatest share of batteries (30.5 and 27.6 per cent), followed by Queensland and Western Australia (15.8 and 14.3 per cent), with the Northern Territory in last place (0.4 per cent).
Many households were still getting rid of used batteries in household waste (49 per cent), the report found, even though more than half (56 per cent) were aware of the hazards they presented.
Post-Christmas clean-ups would uncover more depleted batteries that could cause fires if crushed in collection trucks.
"Fortunately, we haven't had any serious injuries in the waste and recycling sector yet but it's only a matter of time," B-cycle chief executive Libby Chaplin told AAP.
A 2024 study by recycling and waste organisations found batteries caused between 10,000 and 12,000 fires a year.
The increasing popularity of lithium-based batteries had also raised the risk of fires while the powerful batteries in e-bikes and power tools presented serious risks.
Just three per cent of e-bike companies participated in the recycling scheme, the report found, and 65 per cent of power tool firms.
The NSW government introduced new standards for the quality and disposal of e-mobility devices on February 1, and Ms Chaplin said other state governments should follow their lead.
To safely dispose of batteries, consumers are advised to apply sticky tape to their terminals before depositing them at one of the 5496 B-Cycle collection points.
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