Circular Business Models for Electric Vehicle Batteries

Purpose and goal

The purpose of this project was conceptualization of circular business models for used electric vehicle (EV) batteries to extend their life and contribute to increased resource efficiency. While demands for batteries is increasing steeply, new battery prices are decreasing. Being able to extend the life cycle of the EV batteries and reusing them in several applications is an opportunity to prevent future shortages of batteries and delaying disposal. An extended battery life cycle also allows creating and capturing more value out of the resources used in the production of EVs.

Expected results and effects

Results indicate that established business models create a limitation related to circular strategies that respective companies consider and are interested in exploring. Meanwhile, establishing and maintaining business models that optimize circularity of batteries require a large degree of collaboration and trust between different actors along the value chain. This project has facilitated co-creation opportunities for actors from diverse business sectors, with the aim of developing new circular value chains.

Planned approach and implementation

The pre-study phase formed an important basis to the subsequent work in a full-scale project by: (1) exploring potential circular strategies and business model concepts; (2) identifying potential actors to engage in the full-scale development project; and (3) creating a research design for that full-scale project. To accomplish this, we performed stakeholder analysis and did 11 interviews with OEMs, insurance companies, a car dismantler, two technology-based startups, and a potential second user. We also held several brainstorming sessions with the project partners.