Designing a Sustainable Circulation System of Second-life Traction Batteries: A Scenario-based Simulation Approach

Abstract

As electric vehicles (EVs) have been widely adopted globally, the volume of used lithium-ion batteries (LiBs) is expected to increase in the future. It is thus essential to design a sustainable circulation system of LiBs to reduce the environmental impact caused by their production while utilizing residual values of second-life LiBs. However, one challenge is the lack of support for EV OEMs (original equipment manufacturers) in selecting appropriate life cycle options (e.g., refurbishment, repurposing, and recycling) under various uncertainties in the future. To analyze the influences of such uncertainties on the environmental impact, this paper aims to develop a method for designing a sustainable circulation system of second-life traction batteries by combining scenario analysis and life cycle simulation. We develop a life cycle simulation model to calculate the environmental impact through the life cycle of LiBs. The model consists of two sub-models, a life cycle model of traction batteries and a market model that considers customer behaviors and preferences for market demand estimation. Using the developed model, we analyze several scenarios to clarify critical factors for achieving sustainable circulation. To demonstrate the potential of the proposed method, we carry out a case study of Japan. Results show that reusing LiBs in the new EV assembly process could reduce the environmental impact in the entire life cycle of LiBs.