5.1. Connecting Barriers and Enablers
The current CE implementation of the EoL EVBs has many challenges in terms of lack of appropriate policy and regulation, market uncertainty, unprofitable business, and insufficient supporting infrastructure. Nevertheless, the research in this area has been progressing in the last three years, moving forward from theories to implementation.
Based on the findings, the interconnected barriers ranging from technological and technical constraints, organizational and institutional arrangement, economic appeal, regulation, and societal attitudes are closely correlated with the enablers. The enablers have a role as drivers for successful circular economy implementation of the EVBs. Based on the reported barriers and enablers from the collected literature,
Table 5 presents the relationship between the barriers and the enablers to the implementation of CE for the EVBs by indicating which barriers can be resolved by which enablers. The last column indicates the literature that supports the barriers–enablers relationship, which was either explicitly or implicitly suggested.
Table 5 indicates that the enablers are correlated with the barriers. It is also interesting to note that most barriers are resolved through the combination of various enablers. For instance, the unoptimized process for EoL EVBs can be addressed by several enablers. The EoL design of the EVBs, which considers easy and safe disassembly facilitates automated disassembling [
38]. Battery modularization further supports more efficient recycling processes [
33]. To ensure the appropriate EoL process, appropriate status checking, diagnosing, and tracking should also be in place [
22]. Information sharing and tracking of the EVBs are also necessary to support the recycling process and the operations along the EoL supply chain [
38], which is supported by the collaboration of the stakeholders in the supply chain [
30]. Furthermore, an innovative business model ensures high returned EoL EVBs, so that the industrial scalability can be achieved, thus ensuring optimal balance between the collection rate and the economic feasibility [
4]. Certification can also support the marketplace for recycled products [
31]. All the above-mentioned enablers contribute to the optimized EoL processes, thus enabling long-term technical and economic feasibility. It was evidenced in the German case that effective EoL processes are seen as the economic enabler for the circular economy of the EVBs [
36]. Another example regards with the high cost of EoL processes which can be resolved through the combination of technical solutions (battery modularization) [
31], supply-chain approach (appropriate business model) [
4], policy (EVB standards) [
27], and economic incentives [
8]. The findings imply that the CE implementation of the EVBs requires a system-level approach to avoid problem shifting and to enforce the CE practices through simultaneous strategies.
As observed in
Table 5, an enabler can be served as a potential solution to some barriers.
Table 6 hence presents the number of connections with the barriers for each enabler to identify the enablers which resolve the most barriers, termed as key enablers/strategies. Innovative business model is the enabler with the highest connection to the barriers. Due to its strategic role, the business model for CE implementation needs to be explored in the future, consistent with the findings of the bibliometric analysis.
Drawn from the findings, it appears that the establishment of the CE for the EVBs depends on the following key strategies, i.e., innovative business models, economic incentives, EVB standards, legal environmental responsibilities, and certification, which fall in the categories of supply-chain operations and management, economics, policy and regulation, and social, respectively. However, it is argued that the successful establishment of a system can be realized once technology feasibility is achieved, which is then followed by economic profitability and social acceptability for sustaining the operations [
48]. Therefore, to ensure long-term circular supply chain operations of the EVBs, the optimized path of EoL processes should be realized.
Table 5 has indicated that eco-design of EVB (i.e., EVB design which considers EoL processes), battery modularization, and proper technology for checking, diagnosing, and tracking, information sharing, extensive collaboration and alignment of supply-chain stakeholders, innovative business model, and certification are the enablers for continuous operations of the circular supply chain of the EVBs.
5.2. Conceptual Framework of Strategies toward Circular Economy Implementation for the EVBs
Based on the findings, two sets of strategies can be formulated. The first one regards the strategies to establish the CE for the EVBs, whereas the second one corresponds to the strategies for optimizing the circular supply chain system for the EVBs. Innovative business model, economic incentives, EVB standards, legal environmental responsibilities, and certifications are the five strategies that can handle 15 out of 21 reported barriers, which are considered the key strategies to establish the CE for the EVBs. Meanwhile, eco-design for EVBs, battery modularization, proper technology for status checking, diagnosing, and tracking, information sharing and its supporting technology, and extensive collaboration among supply-chain stakeholders, are also in need to optimize circular supply chain operation. Currently, EVB standards, economic incentives, innovative business models, certification, eco-design, battery modularization, and social commitment have not been implemented yet in the current system.
Figure 10 presents a conceptual framework presenting the required strategies both to initiate the CE for the EVBs and to optimize SCS operations. Based on the earlier findings, these strategies should be synchronized and simultaneously introduced to address the interconnected barriers as discussed in the following.
An innovative business model such as the servitization model, as suggested by Ahuja et al. [
4], can increase the rate of returned EVB batteries and reduce the uncertainty in supply because the ownership of the EVBs through their life cycle is the manufacturers. Consequently, the manufacturers can facilitate proper checking, tracking, and diagnosing of battery usage [
22]. In addition, it would help to build the capacity to design the EVBs considering EoL processes which then contributes to the optimized EoL processes, corresponding to lower total supply-chain cost, hence increasing profitability, and reducing risk on the investment. The findings also highlight that the constant commitment and collaboration among the involved stakeholders are crucial [
8]; therefore, innovative business model should define the interactions among the stakeholders to ensure long-term profitability. The innovative business model can be combined with economic incentives for recyclers to further increase the profitability, thus attracting more business to CE for the EVBs, and, eventually, supporting faster development of infrastructure [
21,
31,
34]. The economic incentives can be in the form of tax breaks [
43], subsidies for recovery technologies [
8,
44], economic support for technological research and development [
4], and the introduction of deposit refunds [
31]. However, when the market mechanism is unable to trigger the CE, the regulation comes into play to provide a stepping-stone for initiating the CE implementation. Hence, the appropriate business model and economic incentives should be synchronized and supported by appropriate policy/regulations toward efficient, safe, and profitable supply-chain operations of the EVBs while achieving the efficiency target of recycling EVBs. For instance, the introduction of economic incentives can be coupled with the efficiency target of recycling to encourage the manufacturers/recyclers to make innovations to meet the efficient target [
4]. Given various types of EVBs, it is beneficial to set the standards for the EVBs because various types and specifications of EVBs require different handling. The implementation of EVB standards standardizes the operations (particularly eliminating the compositional uncertainty of the EVBs and ensures the safety of the operations, facilitating a more efficient EoL supply chain for the EVBs [
27]. Therefore, the manufacturers and recyclers may drive the cost down (by reducing high skill labor, storage, and transportation cost), subsequently increasing the economic viability. The standards for the EVBs have currently not existed yet; therefore, regulation on EVB standards should be realized to simplify the EoL processes and ensure safety compliance.
The policy and regulation interventions should also be introduced to support the supply and demand side of the circular supply chain operations. Concerning the supply side of the EVB circular supply chain, a high recovery rate is a function of both technology and legislation/governmental incentives that drive the companies to make innovations and a function of the availability of the returned EoL EVBs. Because the recycling process requires a stable feed of supply, hence, legal environmental responsibilities, such as Extended Producer Responsibilities (EPR), are necessary to further attract participating businesses and increase their commitments [
24,
25,
27] so that a high rate of returned EVBs can be guaranteed [
30,
31]. As suggested by Wrålsen et al. [
32], once the policy and regulation determine the actors responsible for disassembling and recovering the EoL EVBs (for example, using the principle of “polluter pays”), the responsible actors will involve in the CE implementation. Moreover, legal environmental responsibilities would also help anticipate the decrease of the EVBs’ economic value due to technology enhancement [
24]. The replacement of the EVB materials with cheaper materials could lower the economic value of the returned EVB, hence reducing its economic attractiveness [
30,
49]. On the demand side of the EVB circular supply chain, end-users play an essential role in driving the CE implementation of the EVBs [
8]. A common concern for the environment, distrust of the quality and reliability of second-hand products, and lack of knowledge about the importance of CE will cause the market for second-hand batteries not to develop. Literature on socio-technical transition, such as Beltran et al. [
50] and Sopha et al. [
51], have highlighted that the shift in consumers’ practices should foster technology innovation. In this context, the users should be encouraged to shift their practices from disposing to returning or reusing the EoL batteries to drive the circularity in the first place. Certification can be implemented to convince customers that the recycled products are safe and quality-guaranteed, thus building confidence for reusing the batteries and developing a marketplace for the second-hand product of the EVBs [
41]. The behavioral change of the users should be supported by facilitating conditions such as accessible battery collection centers. Nurwidiana et al. [
52] and Klöckner et al. [
53] have evidenced that behavioral change can be hindered by a lack of supporting facilities. The collection centers of the EoL EVBs should be equipped with diagnostics technology to assess the condition and health state of the EoL EVBs. Based on this assessment, the appropriate path of the EoL EVBS is determined. The EVBs with a good health state can be reused. Reusing is preferable because it requires less energy and is resource-intensive compared with the effort to remanufacture/recycle. The degraded EVBs with a capacity of more than 80% are refurbished or remanufactured into new EVBs. The EoL EVBs with a capacity of less than 80% is directed to be used for other second-life applications (repurposing), such as energy storage for the PV industry, peak shaving, and power sources for small applications. The EoL EVBs with poor health are recycled to recover critical materials.
In addition to the strategies to initiate the CE implementation for the EVBs, it is also important to highlight the strategies to support the optimized and thus long-term profitable operation of the circular supply chain system for the EVBs. Developing eco-design for EVBs is crucial [
30,
38]. Makuza et al. [
44] confirmed that recycling facilities using pretreatment methods would not become economically profitable in the future due to high cost and long lead time, therefore re-designing the batteries considering recycling should be employed. The eco-design EVBs have already considered the EoL processes during the design phase so that eco-design EVBs allow safe and easy (or automated) disassembling/dismantling, collecting, transporting, and storage. Battery modularization and appropriate technology for checking, diagnosing, and tracking further support cost-effective EoL processes. The technological enablers should be supported by extensive collaboration among the stakeholders, which can be facilitated through information digitalization [
37]. In addition, social commitment provides strong and long-term support for the market of EVBs [
8].
Last but not least, the successful implementation of CE of the EoL EVBs depends on the combined leveraging of the strategies/interventions, including innovative business model, economic incentives, EVB standards, legal environmental responsibilities, certification, eco-design (design for disassembly), battery modularization, proper technology for status checking, diagnosing, tracking, extensive collaboration, information sharing, and its supporting infrastructure. However, it is worth remarking that the required strategies are not entirely existed yet.
Table 7 summarizes the gap between current adopted strategies and future suggested strategies facilitating CE implementation for the EVBs.
Table 7 implies that the improvement of recycling technology and battery-checking and diagnostics technology should be accompanied by other technologies supporting effective and efficient CE operations, such as information digitalization enabling battery tracking and stakeholder coordination, battery modularization, and eco-design of EVBs ensuring cost-effective and safe operations. Hence, innovative business models, such as the servitization model or leasing platform, ensuring the high return of used EVBs and extensive collaboration among stakeholders, are crucial. The findings are in line with bibliometric analysis suggesting that battery safety and an innovative circular business model are the future directions of the CE implementation. Various mechanisms of economic incentives relevant to policy and regulations, which are currently unavailable, need to be explored. Current policy and regulations of the EVBs are considered insufficient [
4]; therefore, the future policy and regulations should be formulated in a way to be consistent with technology (such as EVB standards, and eco-design directive) and market (such as certification, and consistent global regulation). Moreover, current voluntary participation to return the EoL EVBs is considered not sufficient [
41]; hence, stronger participation in terms of social commitment is also required. The above-mentioned strategies are in line with the CE values suggested by Ripanti and Tjahjono [
54] which are used as a basis for transforming from a linear to a circular supply chain.
5.3. Limitations and Future Research
Although the present study has developed a framework for strategies favoring CE establishment and functioning for the EVBs, the study has several limitations. The adopted SLR has limitations, particularly during article selection. Because the selection was based on the keywords, several publications may be relevant to the topic of the study but were not selected. Second, although the search was based on 10-year publications, the relevant literature was available for the last 3 years. Because the CE implementation of the EVBs is still a new area being explored, just right after the electric vehicle becomes a future transportation mode in many developed countries, the present study undermines the condition in the developing countries. Only two out of the collected articles were from developing countries, and only one article reported empirical evidence on the issue in a developing country, i.e., India.
Drawn from
Table 7, several future research are therefore identified. In terms of technology, a more cost-effective and efficient recycling technology, information digitalization on battery diagnostics and tracking technology, and eco-design of EVBs are worth exploring. Innovative business models for different contexts, types and mechanisms of economic incentives, and consistent policy and regulations on EVB standards, eco-design directive, certification, and global regulation enforcing efficient recycling and proper dismantling are other avenues for potential future research. Moreover, studies focusing on behavioral factors underlying the behavior, such as that in Sopha [
55], are required to explore various soft behavioral interventions driving social commitment.
Based on profile analysis, it is observed that existing literature has been dominated by qualitative research. Consequently, quantitative research on modeling and simulation of the CE transition to predict future paths or examine various interventions is suggested as potential research. Furthermore, scenario development on potential interventions to support CE implementation, such as increasing landfill costs to increase the high rate of the returned EoL EVBs, evaluating the effectiveness of various economic incentives facilitating long-term economic benefits, and predicting how different policies affect the future states of CE system, examining various soft intervention, and exploring other combined interventions are also suggested as future research.
Furthermore, different countries may have different challenges. Developed countries like the USA and European countries have already established technology, infrastructures, and regulation, which may not be the case in developing countries. Given the potential increase of EV deployment in developing countries such as in China [
46], India [
34], Indonesia [
56], as the populous countries in the world, the CE implementation in developing countries needs to be initiated, encouraged, and supported. Kumar et al. [
34] have observed through an empirical study that ineffective recycling, unsuccessful reuse of batteries, and the disposal of batteries are the two most challenging in India’s EV battery supply chain. Similar issues may be observed in other developing countries due to technological and infrastructure constraints. In addition, informal sectors play a role in the EoL processes of the EVBs in developing countries, posing another challenge.