Electric Vehicle Traction Battery Recycling Decision-Making Considering Blockchain Technology in the Context of Capacitance Level Differential Demand

Abstract

In recent years, the rapid growth in electric vehicle ownership has resulted in a significant number of decommissioned traction batteries that will require recycling in the future. As consumer expectations for electric vehicle range continue to rise, the turnover of traction batteries has accelerated substantially. Consequently, there is an urgent need for electric vehicle manufacturers to establish an efficient, recyclable supply chain for the return of end-of-life (EOL) electric vehicle (EV) traction batteries. In this paper, we investigate the closed-loop recycling supply chain for retired power batteries in electric vehicle manufacturers, taking into account blockchain technology and the high range preferences in the electric vehicle market, which are influenced by varying demand for different levels of electric vehicle capacitance. Blockchain, as a distributed and decentralized technology, offers features such as consensus mechanisms, traceability, and security, which have been effectively applied across various fields. In this study, we construct four models involving EV battery manufacturers, EV retailers, and battery comprehensive utilization (BCU) enterprises participating in the recycling process. Through the analysis of a Stackelberg response model, we find that (1) single-channel recycling is less efficient than dual-channel recycling models, a difference driven by the diversity of recycling channels and the variability in recycling markets; (2) Recycling models incorporating blockchain technology demonstrate superior performance compared to those that do not utilize blockchain technology, particularly when the intensity of recycling competition is below 0.76; (3) Traction batteries integrated with blockchain technology exhibit higher recycling rates when the optimization index is below 0.96. Electric vehicle battery manufacturers must evaluate the benefits and costs of adopting blockchain technology; (4) With lower recycling incentive levels and EV range preferences, the single-channel recycling model yields better returns than the other three recycling models. EV manufacturers can enhance overall battery supply chain revenues by establishing varying incentive levels based on market demand for different capacitance levels.