Conditions for Circular Electric Vehicle Battery Value Chains : Exploring Opportunities for Circular Economy Implementation in the Value Chain of Electric Vehicle Batteries in Nairobi, Kenya

Abstract: To reduce the negative impacts of climate change, electric vehicles (EVs) have emerged as a viable solution in the mobility sector, leading to an increase in battery production and use. For electric vehicle batteries (EVBs) to be sustainable, the total impact of the supply and value chain has to be as low as possible, making the implementation of circular economy (CE) principles a key element in the transition. There is currently limited research regarding circularity implementation in the value chains of EVBs, and especially in developing countries. This thesis explores the key stakeholders in the EVB ecosystem in Nairobi, Kenya, and identifies barriers and enablers for CE implementation. The objective of the thesis is to analyze, based on literature and empirical findings, what activities are deemed necessary to facilitate a circular value chain (CVC) for EVBs in Nairobi. To enable a realistic and thus relatively comprehensive analysis, a case study was conducted involving a literature study, interview study, document review, and workshop. Findings indicate that the Nairobi EVB ecosystem is largely unexplored but that currently, the most important stakeholders can be seen as EV manufacturers and consumers, as well as waste management actors, and second life actors. The key enablers of the ecosystem are government, government agencies, energy providers and suppliers, as well as importers and distributors. The findings indicate the possibility of new essential stakeholders in the future including battery original equipment manufacturers (OEMs), new EV manufacturers and original equipment manufacturers (OEMs), public transport companies, and second life actors. Potential ecosystem enablers include financial actors, research institutions, and insurance companies. Identified barriers and enablers of CE implementation can be divided into five areas, namely technology and infrastructure, supply chain and management, economic, policy and regulation, and social. The findings indicate that barriers identified within the different areas are interconnected, requiring coinciding strategies to be solved and making it difficult to rate them in terms of importance. The findings further suggest that for a CVC for EVBs to be initiated and supported by stakeholders, actors within the ecosystem have to adopt CE strategies to create a closed loop supply and value chain. Battery design needs to enable CE strategies, such as reuse, repair, refurbish, remanufacture, repurpose, and recycle. Furthermore, innovative business models that extend the life cycle of products need to be developed to facilitate the transition to CE. This requires collaboration between the stakeholders in the ecosystem, as well as working with the barriers and enablers identified. To create favorable and enabling system conditions, there is a need for policies and regulations to facilitate the implementation of CE strategies at end-of-life (EoL).