Short answer

Explore business models where the manufacturer retains ownership of critical components like EV batteries to ensure their responsible end-of-life management and facilitate circularity.

Field
Sustainability
Source
Journal of Property Planning and Environmental Law (2020)
Method
Regulatory Review and Conceptual Modelling
Evidence
Strong effect

Retaining manufacturer ownership of electric vehicle batteries, even when the vehicle is sold, can be a key policy intervention to establish a viable circular economy for these components. This sustainability research insight is drawn from a 2020 study published in Journal of Property Planning and Environmental Law. Using Regulatory review and conceptual modelling, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Explore business models where the manufacturer retains ownership of critical components like EV batteries to ensure their responsible end-of-life management and facilitate circularity.

Study
SustainabilityHigh ImpactStrong effect

Manufacturer Retained Ownership of EV Batteries Drives Circular Economy

Retaining manufacturer ownership of electric vehicle batteries, even when the vehicle is sold, can be a key policy intervention to establish a viable circular economy for these components.

Journal of Property Planning and Environmental Law · 2020

01

Key Findings

  • 01Current electric vehicle battery recycling is not yet profitable due to low volumes and technological immaturity.
  • 02Regulatory intervention is essential to drive the development of a circular economy for EV batteries.
  • 03A manufacturer-retained ownership model can facilitate a circular economy by incentivizing battery reuse, refurbishment, and recycling.
02

Application

Design takeaway

Explore business models where the manufacturer retains ownership of critical components like EV batteries to ensure their responsible end-of-life management and facilitate circularity.

How to apply

Consider implementing a 'battery-as-a-service' model where consumers lease batteries, allowing manufacturers to manage their end-of-life.

Project actions

  • 01Investigate the current end-of-life management strategies for key product components.
  • 02Propose alternative ownership or service models that enhance product longevity and resource recovery.
03

Method & Evidence

AimWhat policy interventions are necessary to establish a circular economy for electric vehicle batteries?
MethodRegulatory Review and Conceptual Modelling
ProcedureThe study reviewed existing regulations and projected future volumes of electric vehicle lithium-ion batteries (LIBs) reaching end-of-life. It then developed a servitisation model, proposing a new ownership structure where manufacturers retain ownership of the batteries.
ContextAutomotive industry, environmental policy, resource management

Variables

IVManufacturer retained ownership of EV batteries
DVViability of a circular economy for EV batteries
CVEV battery recycling technology maturity, EV market growth projections
04

Strengths & Limitations

Strengths

  • +Addresses a timely and critical environmental issue.
  • +Proposes a novel and potentially impactful solution through business model innovation.

Limitations

Consumer acceptance of new ownership models can be a significant barrier. The economic viability of such models needs thorough analysis.

Reliability & validity

The study's reliance on projections and regulatory review may limit direct empirical validation of the proposed model's outcomes.

Think critically

To what extent are consumers willing to trade traditional ownership for the environmental benefits and potential cost savings of a service-based model for products like electric vehicles?

05

Design Principles

"Design for disassembly and material recovery, coupled with service-based business models, can enable product lifecycle management and resource efficiency."

As electric vehicle adoption accelerates, managing end-of-life batteries presents significant environmental and resource challenges. This model shifts responsibility for battery management and recycling to manufacturers, who are better positioned to implement sustainable practices and recover valuable materials.

06

What This Means for Your Design

To deal with old electric car batteries, companies should keep owning them even after selling the car. This way, they can make sure the batteries are reused or recycled properly.

How to use in your project

  • 1.Use this research to justify the adoption of service-based business models in your design project, particularly for products with complex end-of-life challenges.
07

Add to My Project

08

Quick Cite

Paragraph starter

This research highlights the critical role of policy and innovative ownership models in establishing a circular economy for electric vehicle batteries. By proposing that manufacturers retain ownership of batteries, the study suggests a mechanism to overcome current recycling challenges and drive sustainable practices throughout the battery lifecycle.

09

Source

Journal of Property Planning and Environmental Law

A circular economy for electric vehicle batteries: driving the change

journal · 2020

View source

Questions About This Research

What does the research say about manufacturer retained ownership of ev batteries drives circular economy?
Explore business models where the manufacturer retains ownership of critical components like EV batteries to ensure their responsible end-of-life management and facilitate circularity. Evidence: Journal of Property Planning and Environmental Law (2020).
Why does "Manufacturer Retained Ownership of EV Batteries Drives Circular Economy" matter for design?
As electric vehicle adoption accelerates, managing end-of-life batteries presents significant environmental and resource challenges. This model shifts responsibility for battery management and recycling to manufacturers, who are better positioned to implement sustainable practices and recover valuable materials.
How can designers apply this research?
Explore business models where the manufacturer retains ownership of critical components like EV batteries to ensure their responsible end-of-life management and facilitate circularity.
What were the main findings?
Current electric vehicle battery recycling is not yet profitable due to low volumes and technological immaturity.. Regulatory intervention is essential to drive the development of a circular economy for EV batteries.. A manufacturer-retained ownership model can facilitate a circular economy by incentivizing battery reuse, refurbishment, and recycling.
What research method was used?
Regulatory Review and Conceptual Modelling.
How strong is the evidence?
Evidence strength is rated Strong effect, based on a 2020 journal from Journal of Property Planning and Environmental Law.
What should I do differently in my next project?
Consider implementing a 'battery-as-a-service' model where consumers lease batteries, allowing manufacturers to manage their end-of-life.
What are the limitations?
The study's findings are based on future projections which carry inherent uncertainty. Shifting fundamental market economics could lead to market disruption.