Designing and Implementing Second Life for Electric Vehicle Batteries: An Integrated Framework to Navigate Ecosystem Actors Towards Circularity

The electrification of vehicles has become a critical means to achieve climate-neutral transportation. As more electric vehicles (EV) are adopted, an increasing number of lithium-ion batteries will be utilized, inevitably experiencing capacity degradation over time. Retaining the value of these retired batteries through remanufacturing, reusing, and repurposing to create a second life holds significant environmental and economic benefits. However, many companies within the battery ecosystem struggle to capitalize on this opportunity due to a lack of business insight and suitable business models tailored to their operational contexts. The purpose of this paper is to propose an integrated framework for designing and implementing second life for the EV batteries that could guide and navigate ecosystem actors towards circularity. This study employed an explorative qualitative inquiry approach, utilizing interviews and workshop methods, involving 15 companies in the EV battery ecosystem. Data collection involved 24 semi-structured interviews and 22 workshops. The framework includes four building blocks, including 1) barriers and enablers, 2) circular business models archetypes and design principles, 3) ecosystem management, and 4) battery performance monitoring. Further, the paper explains criteria influencing the selection of design and implementation of strategies for battery second life. This research contributes to the theory of circular business models and ecosystem management in general, with specific relevance to battery second life and circularity.