Relevant Factors on the Standardization of Lithium-Ion Batteries (LIBs) Aimed for Recycling and Corresponding Influence on Innovation

Abstract: Abstract Background:  Electric Vehicles (EVs) have been identified as a sustainable alternative to reduce the world’s dependence on fossil fuels. EV sales are starting to reach significant numbers. Subsequently, the demand for Lithium-Ion Batteries (LIBs), a key component in EVs, has increased. Due to the higher demand, a greater volume of LIBs will enter the waste stream. The waste-management strategies commonly used for the disposal of LIBs create potential risks of soil and air pollution, affecting the sustainability of EVs. The underdeveloped waste-management strategies, and the environmental and social risks related to improper disposal of LIBs, makes the study of second-life strategies of LIBs relevant.  Circular Economy (CE) promotes circular instead of linear flows of materials to reduce environmental impacts and maximize resource efficiency. LIB recycling is gaining popularity since LIBs contain valuable metals such as cobalt and lithium. A major challenge for LIB recycling is developing economical ways to extract and process metals from spent LIBs. The reviewed literature points to aresearch gap formed by the lack of study on the standardization of LIBs aimed to improve LIB recycling. The research gap is relevant because the reviewed literature points to a connection between standardization, innovation, and sustainability. Innovation of LIBs is a driver of sustainable transportation solutions, and the study of LIB standardization is relevant for two reasons. Firstly, standardization may influence further innovations needed to enable sustainable transportation. Secondly, standardization is relevant to achieve better recycling of LIBs and reduce the negative environmental and health effects of improper LIB disposal. Objectives:  During the development of the theoretical framework, two paradoxes were observed. The first paradox is between the dimensions of innovation and sustainability. Innovation acts positively on sustainability by enabling LIB development necessary to include EVs in the transportation sector. On the other hand, improper disposal of LIBs results in pollution affecting sustainability negatively. The second paradox is between the dimensions of standardization and innovation. Academics perceive standardization either as an enabler or as a hinder to innovation. Standardization enables innovation by giving a path and conditions for further technological developments, but standardization could also constrain the freethinking needed in innovation. Considering that innovation of LIBs has been a driver in the development of EVs, often described as a sustainable transportation solution, the study of LIBs’ standardization is relevant in the context of further innovation and higher sustainability goals.  The purpose of this study is to help to fill the gap in existing research on LIB recycling by exploring what factors in the dimensions of standardization, innovation, and sustainability are perceived as relevant for LIBs’ standardization aimed for better recycling. Moreover, the purpose of this thesis is also to explore how these factors influence further innovation of LIBs. Consequently, this thesis seeks to answer the following research question: What factors are perceived to be relevant for standardization of LIBs in the dimensions of standardization, innovation and sustainability aimed to improve recycling, and why? Also, how could these factors influence innovation of LIBs? Methodology:  Research in standardization aimed for recycling of LIBs is in its infancy. Therefore, the research problem is perceived as unstructured and modestly understood. Consequently, an exploratory research design has been selected for this thesis. The chosen research strategy was to conduct a case study focused on automotive firms. The selection of the case was based on four criteria. The first criterion was to select a firm in Sweden. The second criterion was to choose a firm with a defined strategy towards electric vehicles and a track of being innovative. A third criterion behind the selection was the firm’s potential for growth in units sold. The fourth criterion was that the firm should have a publicly known ambition or strategy towards sustainability. Volvo Cars Corporation (VCC) fulfilled all four criteria and was selected as the study case for this thesis. Data was collected by conducting semi-structured interviews with key organizational members involved in work related to second-life strategies of LIBs, development of LIBs, sustainability analysis, andlegislations or standardization. The sampling then focused on informants in the business areas of R&D,which covers these organizational activities. The interview questions were based on factors found to berelevant during the literature review within the dimensions of standardization, innovation, and sustainability. Also, each factor was associated with corresponding attributes. The formulation of the interview questions aimed to explore the relevance of an attribute for the standardization of LIBs aimed for better recycling and to explore how the factor influences innovation. The explored factors in the dimension of standardization were the source of standard, working groups for standardization development, practices during standard development, and design of standards. Meanwhile, the explored factors in the dimension of innovation were network effects and barriers to entry. In the sustainability dimension, the explored factors were exploration-exploitation balance and network effects.  The data analysis for the interviewees was based on first-order categorization of the answers, followed by creating second-order themes. The first-order categories and second-order themes were used for analyzing and assessing the relevance of the explored factors for the standardization of LIBs. Afterward, the second-order and aggregate themes were considered for the analysis of the factors’ influence on innovation. Moreover, the second-order themes have been used to identify new relevant factors to be considered in the standardization of LIBs with an influence in innovation. In this work, those identified relevant factors are referred asidentified elements. Finally, the analysis for the influence of the identified elements on innovation was visualized by the elaboration of a thematic map.  Results & Analysis:  The explored factors of standardization sources, working groups for standardization development, practices during development of standards and design of standards within the dimension of standardization were perceived as relevant and influenced innovation in combination with other identified elements. The most relevant identified elements were maturity, rigid standards, harmonization, flexibility, tacit knowledge, and culture. Maturity and rigid standards were perceived as the dominant among the identified elements by being important to avoid a negative influence on innovation caused by technology lock-in and obsolescence of the developed standards. Regarding identified elements with a positive influence on innovation, harmonization, culture, tacit knowledge, and flexibility are perceived as relevant to innovation by enabling common solutions in harmonized alliances, clarity in scope for the standards, and allowing freedom in the choice of methods. In the case of explored factors in the dimensions of innovation and sustainability, the explored factors of networks effects, entry barriers, and exploration-exploitation were perceived as relevant for the standardization of LIBs. Moreover, the results of the identified elements showed technology lock-in and iiiinefficient products as the biggest influence negatively affecting innovation and sustainability,respectively. The most important identified elements are maturity and investments for the technology lock-in aggregate theme, whereas efficiency, pricing, and environmental impact are identified for the case of inefficient products. Regarding aggregate themes enabling innovation and sustainability, they were presented in the form of resource and process optimization, market dynamics, and holistic view. Among the dominant identified elements enabling innovation are efficiency and specialized facilities.In addition to positive and negative aggregate themes, the aggregate theme of technology path was created. This aggregate theme refers to a technology development path that could influence innovation and or sustainability in potentially different ways: positive, neutral, or negative. The dominant identified elements in this theme are infrastructure, social realm, and consumer preference and awareness. Conclusions:  This thesis explored the relevance of factors in the dimensions of standardization, innovation, and sustainability on LIB standardization and their influence on the innovation of LIBs. The exploration of the factors’ perceived relevance answered the research question and resulted in new identified elementsrelevant to be considered in the standardization of LIBs with an influence on innovation. Consequently, this thesis fulfilled its purpose by helping to fill the gap in the existing research on LIB recycling. The main conclusions for the exploration of factors within the dimension of standardization are two. Firstly, the explored factors are relevant to be considered in the standardization of LIBs. Secondly, the exploration led to the new identified elements with negative and positive influence on innovation. The identified elements of maturity and rigid standards showed a negative influence on innovation in the form of technology lock-in or obsolescence of standards. However, the identified elements of harmonization, flexibility, tacit knowledge, and culture, showed a positive influence on further innovation of LIBs. The main conclusions for the dimensions of sustainability and innovation were that the explored factors are relevant in LIB standardization. Also, high compatibility between LIB manufacturers and recyclers raises challenges towards innovation while supporting sustainability. Also, consumer preferences and their shifts play a central role with negative and positive influence on innovation and sustainability and as a driver to certain segments of standardization.