Build Business Cases To Maximize The Value Of Used Vehicle Battery Assets

Company Name: Ford Motor Company

Partnering University: Florida A&M University
Problem Statement:
The future of the automotive industry is electric. The transition to battery powered vehicles is running at full
steam and even accelerating as more and more countries and cities around the world announce their fossil
fuel engine ban dates. 
The transition drives a multitude of challenges to the players. One of which, that has not really been
addressed to date is, what happens to all these used batteries in the market?
 
Vehicle Batteries are a high-tech asset and the battery technology and chemistry is evolving quickly, making
them better, generation by generation.  
However, Batteries lose energy capacity over the lifetime, depending on how they are treated. Fast Charging
for example degenerates a battery faster. In some cases, the remaining battery capacity may drop below the
minimum user need threshold and will have to be replaced. Also, Batteries will be returned at the end of the
vehicle life.  
 
In any case, Ford will face a large number of used vehicle batteries being returned that still have a good
proportion of their original energy capacity and, in contrast to immediate recycling, might be put to use for
other purposes to maximize the value of these assets. 
 
Question:
How can Ford maximize the value of 2nd hand vehicle batteries? 
 
Project Objective:
Identify the most profitable business models to maximize the value of returned 2nd hand vehicle battery:
What is/are the most promising reuse option(s)? 
 Build, evaluate & compare business model hypotheses for a battery 2nd life (including investments,
(reverse-) logistics, end-of-life-recycling etc.) 
 Develop a decision matrix to make a recommendation.  
 Describe the recommended business model and its supply chain, identify the sources of revenue, the
cost drivers and resulting profit potential. 
 Evaluate the robustness of assumptions, and develop + assess the likelihood of "What Would Have
To Be True" around the industry, the distribution channels, the end-customer, capabilities, costs and
competitor reactions 

Country/Region of Focus: United States & Europe

Tools, Methods and/or Frameworks: Open; Recommended: Roger Martin - Playing To Win (Strategy)
NDA Required? Yes
Project Structure: Class 1: Supply Chain Research, Team of 4-6 students
Semester: Fall 2021
Project Contacts Title Email Phone
Konrad Szatkowski CV Strategy Manager kszatkow@ford.com n/a
Hendrik Schulze Brexel CV Strategy Specialist hschul36@ford.com n/a
Chad Olson (Recruiting Support) Strategy Specialist colson3@ford.com 313-806-2729
Dr. Angela Tidwell Supply Chain Research Faculty angela.tidwell@famu.edu 850-412-7723
Dr. Dwayne Cole Supply Chain Research Faculty dwayne.cole@famu.edu TBD