The diffusion of electric vehicles is estimated in constant growth in the next years. However, Europe is not prepared to manage such a massive flow of Electric Vehicles (EVs) at the End-Of-Life (EOL). Consolidated value chains including recyclers, remanufacturers and dismantlers able to efficiently and safely treat key-part of EV at the EoL (such as batteries) are not existing at the needed industrial scale due to their novelty and complexity, which requires innovative technologies and methods. Indeed, we are in the ramp-up phase of the mobility electrification process, where the volumes of EOL EVs and the market for recycled/remanufactured parts from EVs are still low. Thus, investments in new automated technologies may not be economically justified. Finally, the huge uncertainty on the volume of parts, their EOL conditions, materials cost fluctuations and market acceptability discourage companies from starting new recycling/remanufacturing businesses, with the consequent risk to delay the consolidation of European value chains specialized in the EOL management of EVs. In order to address these challenges, the present research, which was carried out in the frame of the H2020 "CarE-Service" European funded project, proposes a new circular business model for the EOL management of EVs. The new business model is supported by innovative dismantling technologies and an ICT Platform for the coordination among the stakeholders of the circular value chains, as well as for the establishment of a trusted marketplace of remanufactured parts and recycled materials. Advanced robotics technologies for battery pack dismantling and on-site parts testing were developed to be easily transportable by trucks, called "Smart Movable Modules (SMMs)", at the dismantlers' site. Through the ICT platform, dismantlers buy specialized dismantling and testing services according to the volume of electric vehicles they have to process and pay per service. Dismantled parts are priced according to testing results and showcased on the Platform. Recyclers/remanufacturers can buy them to produce recycled materials and remanufactured products that are showcased on the Platform for purchase by automotive companies or companies of other industries. The ICT Platform, integrated with the dismantling and testing SMMs, is a newco guaranteeing the homogeneous quality of all network processes and operations, limiting the intrinsic uncertainty of the business, avoiding market fragmentation and making new technologies and skills accessible to dismantlers. In the paper, the principles of this business model, the characteristics of disassembly and testing technologies of the SMMs, the functionalities of the ICT Platform and the economic sustainability analysis of the business model are presented.

A new Business Model for the Circular Economy of Electric Vehicles

Shafinejad Parnia;Giacomo Copani;
2022

Abstract

The diffusion of electric vehicles is estimated in constant growth in the next years. However, Europe is not prepared to manage such a massive flow of Electric Vehicles (EVs) at the End-Of-Life (EOL). Consolidated value chains including recyclers, remanufacturers and dismantlers able to efficiently and safely treat key-part of EV at the EoL (such as batteries) are not existing at the needed industrial scale due to their novelty and complexity, which requires innovative technologies and methods. Indeed, we are in the ramp-up phase of the mobility electrification process, where the volumes of EOL EVs and the market for recycled/remanufactured parts from EVs are still low. Thus, investments in new automated technologies may not be economically justified. Finally, the huge uncertainty on the volume of parts, their EOL conditions, materials cost fluctuations and market acceptability discourage companies from starting new recycling/remanufacturing businesses, with the consequent risk to delay the consolidation of European value chains specialized in the EOL management of EVs. In order to address these challenges, the present research, which was carried out in the frame of the H2020 "CarE-Service" European funded project, proposes a new circular business model for the EOL management of EVs. The new business model is supported by innovative dismantling technologies and an ICT Platform for the coordination among the stakeholders of the circular value chains, as well as for the establishment of a trusted marketplace of remanufactured parts and recycled materials. Advanced robotics technologies for battery pack dismantling and on-site parts testing were developed to be easily transportable by trucks, called "Smart Movable Modules (SMMs)", at the dismantlers' site. Through the ICT platform, dismantlers buy specialized dismantling and testing services according to the volume of electric vehicles they have to process and pay per service. Dismantled parts are priced according to testing results and showcased on the Platform. Recyclers/remanufacturers can buy them to produce recycled materials and remanufactured products that are showcased on the Platform for purchase by automotive companies or companies of other industries. The ICT Platform, integrated with the dismantling and testing SMMs, is a newco guaranteeing the homogeneous quality of all network processes and operations, limiting the intrinsic uncertainty of the business, avoiding market fragmentation and making new technologies and skills accessible to dismantlers. In the paper, the principles of this business model, the characteristics of disassembly and testing technologies of the SMMs, the functionalities of the ICT Platform and the economic sustainability analysis of the business model are presented.
2022
Circular economy business models
End-of-Life Electric vehicles
automotive supply chain
ICT Platform
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.14243/446555
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