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Is Electric Vehicles Battery Recovery a Source of Cost or Profit?

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The Automobile Revolution

Abstract

The lithium-ion battery technology as the today’s best available technology is a key in accompanying vehicles electrification. Its end-of-life recovery is lever in overcoming technical challenges towards electromobility deployment, such as battery cost, environmental impact, the availability of constituent materials and the mandatory recycling rate. In this chapter, we focus on economic aspects, in order to assess the end-of-life recovery impact: we analyze the end-of-life cost evolution of lithium-ion batteries to determine whether it will be a source of cost or profit for car manufacturers. We define and analyze two recovery options: on the one hand, simply recycling which is mandatory by regulation and, on the other hand, repurposing for reuse in many second life applications (from residence related applications to energy storage and grid stabilization). To account for the complexity and the long-term horizon of our study (2030), we combine the use of System Dynamics with the Stanford Research Institute Matrix for building scenarios that mix relevant factors such as the electric vehicle market and the proportion of repurposing for reuse. Finally we show that repurposing could lower the battery’s initial cost—under certain conditions regarding the future battery price and the repurposing cost—where recycling might increase it.

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Notes

  1. 1.

    The objective of the ELIBAMA project is to enhance and accelerate the creation of a strong European automotive battery industry structured around industrial companies already committed to mass production of Li-ion cells and batteries for EV: https://elibama.wordpress.com/.

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Acknowledgment

This research benefits from the support of the Chair “PSA Peugeot Citroen Automobile: Hybrid technologies and Economy of Electromobility”, so-called Armand Peugeot Chair led by CentraleSupélec, ESSEC and sponsored by PEUGEOT CITROEN Automobile.

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Correspondence to Hakim Idjis .

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Appendix

Appendix

The Appendix highlight the main assumptions used in our SD model, starting from the recycling costs, which are derived from bibliographic research (Hoyer et al. 2013, 2014) and industrial announcements (Umicore 2010) (Table 8.7).

Table 8.7 Recycling costs assumptions

The following Tables 8.8 and 8.9 give the main assumptions for repurposing costs and LIB prices. In this chapter, we have adopted the mean values.

Table 8.8 Repurposing costs assumptions
Table 8.9 LIB price assumptions

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Idjis, H., da Costa, P. (2017). Is Electric Vehicles Battery Recovery a Source of Cost or Profit?. In: Attias, D. (eds) The Automobile Revolution. Springer, Cham. https://doi.org/10.1007/978-3-319-45838-0_8

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  • DOI: https://doi.org/10.1007/978-3-319-45838-0_8

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