How the external environment affects the equilibrium decisions and profits of battery and EV manufacturers?
How the external environment affects the equilibrium decisions and profits of battery and EV manufacturers?
With the rapid development of the electric vehicle (EV) industry, the problem has emerged of how to properly recycle and reuse retired EV batteries. The efficiency of battery disassembly is therefore the key factor affecting the battery’s potential for recovery. When a manufacturer considers efficiency of disassembly as an aspect of new EV battery design, it can save disassembly costs when the battery is retired, creating an incentive for used battery recycling and echelon utilization. This paper aims to promote the echelon utilization of used batteries and explore how the impact of external market environments influences decisions within the supply chain. This paper introduces a supply chain model including battery manufacturers who determine the level of battery disassembly design and EV manufacturers responsible for recycling waste batteries. Research findings indicate that when battery manufacturers consider disassembly design, both battery and EV manufacturers can enhance profitability while aligning with Extended Producer Responsibility (EPR) requirements. The proposed cost-sharing contract demonstrates that the profitability of both parties improves when the cost-sharing coefficient between them remains sufficiently low. To ensure the sustainable development of the EV industry, battery and EV manufacturers must bolster their cooperation. Additionally, they should foster a favorable market environment and actively support the establishment of more recycling enterprises. This approach will heighten consumer awareness of recycling incentives and necessitate certain subsidies for low-capacity battery trading. This study contributes valuable theoretical insights for battery manufacturers and supply chain decision-makers by analyzing the influence of external factors on the battery recycling supply chain.
Disassembly design, Echelon utilization, Recycling of used batteries, Supply chain coordination
Zhao, Senlin
901fc1ad-2e15-4ac9-a394-62f780c1fa83
Liu, Hongchen
b479672c-c870-4fae-84ef-a194881a3c1c
Zhou, Qin
22cc3c1b-50f4-41e0-9c3e-8cdf183a022e
Xia, Xiqiang
f45507cc-eb22-4768-bd0e-a08a6324429b
5 December 2023
Zhao, Senlin
901fc1ad-2e15-4ac9-a394-62f780c1fa83
Liu, Hongchen
b479672c-c870-4fae-84ef-a194881a3c1c
Zhou, Qin
22cc3c1b-50f4-41e0-9c3e-8cdf183a022e
Xia, Xiqiang
f45507cc-eb22-4768-bd0e-a08a6324429b
Zhao, Senlin, Liu, Hongchen, Zhou, Qin and Xia, Xiqiang
(2023)
How the external environment affects the equilibrium decisions and profits of battery and EV manufacturers?
Journal of Cleaner Production, 434, [139838].
(doi:10.1016/j.jclepro.2023.139838).
Abstract
With the rapid development of the electric vehicle (EV) industry, the problem has emerged of how to properly recycle and reuse retired EV batteries. The efficiency of battery disassembly is therefore the key factor affecting the battery’s potential for recovery. When a manufacturer considers efficiency of disassembly as an aspect of new EV battery design, it can save disassembly costs when the battery is retired, creating an incentive for used battery recycling and echelon utilization. This paper aims to promote the echelon utilization of used batteries and explore how the impact of external market environments influences decisions within the supply chain. This paper introduces a supply chain model including battery manufacturers who determine the level of battery disassembly design and EV manufacturers responsible for recycling waste batteries. Research findings indicate that when battery manufacturers consider disassembly design, both battery and EV manufacturers can enhance profitability while aligning with Extended Producer Responsibility (EPR) requirements. The proposed cost-sharing contract demonstrates that the profitability of both parties improves when the cost-sharing coefficient between them remains sufficiently low. To ensure the sustainable development of the EV industry, battery and EV manufacturers must bolster their cooperation. Additionally, they should foster a favorable market environment and actively support the establishment of more recycling enterprises. This approach will heighten consumer awareness of recycling incentives and necessitate certain subsidies for low-capacity battery trading. This study contributes valuable theoretical insights for battery manufacturers and supply chain decision-makers by analyzing the influence of external factors on the battery recycling supply chain.
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Accepted/In Press date: 18 November 2023
e-pub ahead of print date: 27 November 2023
Published date: 5 December 2023
Additional Information:
Funding Information:
Funding: This work is supported by the National Natural Science Foundation of China [grant numbers 71702101 , 72072111 ], the National Social Science Fund of China [grant number 19BJY208 ], Humanities and Social Sciences from the Ministry of Education of China [grant number 21YJC630140 ], and Program of Philosophy and social sciences in Henan province [grant number 2022BJJ094 ].
Keywords:
Disassembly design, Echelon utilization, Recycling of used batteries, Supply chain coordination
Identifiers
Local EPrints ID: 484974
URI: http://eprints.soton.ac.uk/id/eprint/484974
ISSN: 0959-6526
PURE UUID: 01e1d6d2-a01f-4ae5-a17b-02bc9d3d4882
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Date deposited: 27 Nov 2023 17:43
Last modified: 06 Jun 2024 02:16
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Contributors
Author:
Senlin Zhao
Author:
Hongchen Liu
Author:
Qin Zhou
Author:
Xiqiang Xia
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