Developing business model framework for companies operating in the second life batteries market

Abstract

The rapid growth of the electric vehicle (EV) market has led to an increased demand for batteries, necessitating sustainable solutions for their entire lifecycle. This paper presents a conceptual framework addressing the second life stage of EV batteries. The framework comprises three primary elements: Value Proposition, Value Creation and Delivery, and Value Capture, each further divided into sub-elements encompassing various aspects of second life batteries. Developed through a literature review and validated through workshops with partnering companies, the framework provides a holistic view of second life batteries management. The study's findings identify distinct product/service offerings, target customer differentiation, key activities, ownership options, channels and customer relationships, resources and capabilities, partners and suppliers, cost structures, and revenue models for second life batteries. The paper's theoretical contribution lies in offering a framework that guides researchers and practitioners in developing sustainable strategies for battery production, use, and recycling. Practical implications include providing a tool for companies to evaluate and improve their practices in terms of sustainability and value. By fostering sustainable and profitable strategies, this paper contributes to the literature on sustainable battery production and the circular economy, while also benefiting the EV industry and society.