Design a reverse logistics network for end-of-life power batteries: A case study of Chengdu in China

Abstract

China's policies contributed to the significantly growing sales of electric vehicles (EVs). Unproperly managing giant amounts of end-of-life (EOL) power batteries could result in resource waste and negative environmental impacts. Accelerating the construction of a reverse logistics network (RLN) for EOL power batteries in Chengdu plays an exemplary role in Western China. Using the mixed-integer linear programming (MILP) model with the aim of cost minimization, we design an RLN for EOL batteries in Chengdu based on the existing collection sites. Considering costs, sales of refurbished batteries and metals from EOL batteries, the network's profit in 2022 amounted to RMB 88.84 million. The RLN still faces challenges. 21,192 tons of EOL batteries that don't flow into the network prevent the recovery of many metal resources. In addition, wide variation in scrapping volumes by district, uneven distribution of nodes, and a few alternative sites put more load on nodes closer to the central district and aren't conducive to cost reduction and digestion of the urban mine. We agree that traceability management, the implementation of extended producer responsibility, increasing nodes in surrounding districts while rationalizing the layout, and government incentives and supervision contribute to the sustainability of the economy and resource supply.