Sustainability and circularity metrics for EV batteries: Enabling circular economy strategy decision making and value communication

Abstract: The increasing focus on lithium-ion batteries (LIBs) in the context of electrification of transport sector has raised concerns about their high costs, resource and energy demands, environmental impact, and social supply chain risks. To address these challenges and maximize the value of LIBs throughout their lifecycle, circular economy (CE) strategies, such as reusing and repurposing, are being explored. These strategies offer economic, environmental, and social benefits. However, managing LIBs' lifecycle from an environmental perspective involves balancing objectives related to resource depletion and climate change, alongside contextual factors and business considerations like regulatory requirements and customer acceptance. The study found a knowledge gap of sustainability and circularity metrics for life cycle management of LIBs to promote slowing the loop strategies. To track and communicate these relevant metrics for CE strategies, the development of a Digital Battery Passport (DBP) is considered essential. This research study investigates sustainability and circularity metrics that are pertinent to the DBP and support the implementation of slowing the loop strategies. The study examines the practical, academic, and policy perspectives by conducting interviews across the value chain. The findings emphasize the significance of adopting a diverse set of metrics industry-wide, enabling data-driven decision-making and effective communication to support CE business models. Additionally, the study explores the role of servitization in operationalizing the DBP. Servitization facilitates data access, streamlines battery ownership, and enables the adoption of circular economy strategies by promoting the use of second-life products.