Reverse Logistics for Lithium-ion Batteries : A study on BPEVs in Sweden

Sammanfattning: In recent years the amount of newly registered electric vehicles, hybrid electric vehicles, and plug-in hybrid electric vehicles has increased rapidly in the Swedish market. These vehicles could be classified as battery-powered electric vehicles, and a majority carry a lithium-ion battery. The demand for lithium is expected to increase considerably, as a result of such a swift growth in battery-powered electric vehicles. Thus, if the recycling rate of lithium stays at a low level, demand could reach a scarcity-level by 2050. While neither any infrastructure nor an established process for recycling lithium-ion batteries currently exists in Sweden, this study aims to provide necessary input and verified tools for the design of a future reverse supply chain for discarded lithium-ion batteries in Sweden. The literature review of this study covers the subjects of reverse logistics, supply chain network design, and operations research. A thorough situation analysis of the Swedish market for battery-powered electric vehicles is conducted, and the composition, function, and characteristics of lithium-ion batteries are studied. The study finds that estimations of future demand of recyclable lithium-ion batteries in Sweden could be between 206 711 and 726 974 tons accumulated, based on actual and predicted sales numbers until 2030. Even if it is obvious that there are going to be large quantities of such batteries requiring recycling in the future, and even if some established processes exist, there is no defined supply chain for the collection of those batteries. Finally, a mixed-integer programming model for the design and development of a future reverse supply chain is presented. The model, characterized as a discrete multi-period facility location/allocation model, can with minor modifications be used for problems with fluctuating demand or when the demand is assumed to slowly progress until it has reached a steady state.