Towards sustainable business models for electric vehicle battery second use: A critical review

Abstract

A global mass market adoption of electric vehicles (EVs) is still hindered by the high costs of lithium-ion batteries (LIBs). Repurposing degraded EV batteries in second use applications holds the potential to reduce first-cost impediments of EVs. New business models are emerging rapidly within the EV and battery second use (B2U) industries but they focus on economic aspects without integrating social and environmental dimensions. Simultaneously, the emerging research topic around sustainable business models (SBMs) seem to be able to bridge the environmental management concerns in conjunction with economic and social changes. This paper addresses this paucity in the literature by offering an interdisciplinary approach by drawing upon key perspectives from the emerging sustainable technology of EVs and its underlying B2U market in relation to SBMs. Findings reveal major contributions to theorists and practitioners. B2U holds the potential to facilitate current unsustainable practices in the EV industry. This in turn, will lead towards a faster EV market uptake and improvements of overall sustainability performance through SBM perspectives. Accordingly, a B2U business model framework is conceptualised that embodies the cross-sector multi-stakeholder impact and the shared value creation mechanism for the EV industry and emerging B2U market. We finally conclude that as such B2U holds the potential to prove itself to be a viable and efficient case for sustainability. This can be implemented by taking a multi-stakeholder network centric business model design compared to traditionally firm-centric models, which ultimately refreshes the traditional business models on sustainability.