The Are We There Yet? Australia's Journey Towards a Circular Economy on Tyres report found Australia generated 537,000 tonnes of used tyres in total in 2023-24. While more than 353,000 tonnes (66 per cent) were recovered through reuse, recycling or energy recovery, the report indicates much of this does not deliver true circular economy outcomes.

“Australia's impressive 87 per cent recovery rate for passenger, truck and bus tyres is masking an underlying failure to create genuine circular economy outcomes,” said TSA CEO Lina Goodman.

“The most recent data from this report shows that more than half (53 per cent) 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 88per cent are recovered, more than three quarters are used as fuel.”

The report identifies some major differences between tyre sectors. Passenger, truck and bus tyres achieved high recovery rates (87 per cent), but with limited circular benefits. Off-the-road (OTR) tyres used in mining and agriculture had a low recovery rate of just 13 per cent, but when recovered, often went to higher-value recycling and reuse.

Mining tyres remain a particular challenge, with less than 5per cent recovered and more than 109,000 tonnes buried onsite last year.

“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.”

Despite some progress – with tyre recycling rates rising from 11 per cent to 17 per cent over five years – Australia’s recycling capacity remains limited. Domestic granulating and crumbing facilities can process just 86,250 tonnes annually, far below what’s needed for genuine circularity.

Ms Goodman stressed that both industry commitment and stronger government action are needed.

“It’s one thing to prevent tyres from ending up in landfills, stockpiles or being dumped – doing something useful with them is quite another,” she said.

“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.”

The report concludes with TSA calling for mandatory product stewardship to drive systemic change, with the group arguing proper regulatory measures are critical for the sector to become more sustainable.

To find out more about tyre recycling or where to find accredited tyre recyclers, visit Recycling Near You.