Enhancing Lithium-Ion Battery Manufacturing Efficiency: A Comparative Analysis Using DEA Malmquist and Epsilon-Based Measures

Abstract

Innovative carbon reduction and sustainability solutions are needed to combat climate change. One promising approach towards cleaner air involves the utilization of lithium-ion batteries (LIB) and electric power vehicles, showcasing their potential as innovative tools for cleaner air. However, we must focus on the entire battery life cycle, starting with production. By prioritizing the efficiency and sustainability of lithium-ion battery manufacturing, we can take an essential step toward mitigating climate change and creating a healthier planet for future generations. A comprehensive case study of the leading LIB manufacturers demonstrates the usefulness of the suggested hybrid methodology. Initially, we utilized the Malmquist model to evaluate these firms’ total efficiency while dissecting their development into technical and technological efficiency change components. We employed the Epsilon-Based Measure (EBM) model to determine each organization’s efficiency and inefficiency scores. The findings show that the EBM approach successfully bridged the gap in the LIB industry landscape. Combined with the Malmquist model, the resulting framework offers a powerful and equitable evaluation paradigm that is easily applicable to any domain. Furthermore, it accurately identifies the top-performing organizations in specific aspects across the research period of 2018–2021. The EBM model demonstrates that most organizations have attained their top level, except for A10, which has superior technology adoption but poor management. A1, A2, A4, A6, A8, A9, and A10 were unable to meet their targets because of the COVID-19 pandemic, despite productivity improvements. A12 leads the three highest-scoring enterprises in efficiency and total productivity changes, while A3 and A5 should focus on innovative production techniques and improved management. The managerial implications provide vital direction for green energy practitioners, enhancing their operational effectiveness. Concurrently, consumers can identify the best LIB manufacturers, allowing them to invest in long-term green energy solutions confidently.