A circular economy for electric vehicle batteries: driving the change

Purpose: With the UK’s accelerating plans to transition to electric mobility, this paper aims to highlight the need for policies to prepare for appropriate management of electric vehicle (EV) lithium-ion batteries (LIBs) as they reach the end of their life. Design/methodology/approach: This is a regulatory review based on projections of EV LIBs coming off the market and associated problems of waste management together with the development of a servitisation model. Findings: Circular economy in EV LIBs is unlikely to shape itself because LIB recycling is challenging and still in development. LIB volumes are insufficient for recycling to be currently profitable, and a circular economy here will need to be driven by regulatory intervention. Ignoring the problem carries potentially high environmental and health costs. This paper offers potential solutions through new EV ownership models to facilitate a circular economy. Research limitations/implications: The authors suggest a new EV ownership model. However, despite environmental benefits, re-shaping the fundamentals of market economies can have disruptive effects on current markets. Therefore, further exploration of this topic is needed. Also, the data presented is based on future projections of EV markets, battery lifespan, etc., which are uncertain at present. These are to be taken as estimates only. Originality/value: The paper proposes regulatory interventions or incentives to fundamentally change consumer ideas of property ownership for EVs, so that EV automotive batteries remain the property of the manufacturer even when the consumer owns the car.