From a trickle to a deluge of Spent EV batteries: Are we prepared?

The rapid growth in global electric vehicle sales over the past decade has led to unsustainable and unethical extraction of natural resources, broken supply chains for cathodes, and a likelihood of significant environmental hazards from a deluge of spent batteries expected in coming years. Even though it is now technologically feasible to give the spent batteries a second life or harvest critical raw materials, significant challenges remain in tracking spent batteries, optimizing reverse logistics costs, and maximizing value recovery. We propose an ecosystem value optimization approach powered by a digital solution framework to enable five key value drivers for battery circularity – safety, regulatory compliance, carbon footprint reduction, quality, and financials. For example, stakeholders can cut average transportation costs of spent batteries by 11–44% compared to current shipping practices; and improve value recovery by 52–60% by routing batteries with good health to second-life application providers.