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Chapter 1. Introduction
An eco-balance refers to the consumption of energy and resources and the pollution caused
by the production cycle of a given product, which the product is followed throughout its entire
life cycle, from the extraction of the raw materials, manufacturing, and use, right through to
recycling and final handling of waste . (eea.europa) The process of ‘Li-ion’ battery recycling
has negative eco-balance effect, aim of this paper is to find a sustainable value chain to reduce
this negative effect. Trend of electrification in automotive industry create this whole new
problem of battery recycling. The demand is expected to grow by around 30 percent, nearing
4,500 gigawatt-hours (GWh) a year globally by 2030, and the battery value chain is expected
to increase by as much as ten times between 2020 and 2030 to reach annual revenue as high
as $410 billion. (Mackiensy & Company, January 7, 2022) A qualitative research gives 3 major
values chains which are briefly discussed in this paper. Now question is, are these value
chains are sustainable enough to reduce negative eco-balance effect and carbon footprint of
whole recycling process. The idea of a sustainable economy, which includes a focus on
reducing waste and maximising resource utilisation, has gained support as a possible solution
for the growing amount of waste and the loss of important raw resources. Reverse logistics,
which includes the procedures of gathering, transporting, repairing, recycling, and reusing
products at the end of their life cycles, has become an essential part of sustainable value
chains in this environment. Also, by emphasising on the recovery and reuse of essential
materials from expired Li-ion batteries, such as lithium, cobalt, and nickel, primary mining
activities can be made less demanding, and the environmental impact of battery manufacture
can be greatly reduced. The current research combines theoretical frameworks from the
domains of supply chain management, environmental economics, and industrial ecology to
investigate the possible sustainable value chain for reverse logistics of retired lithium-ion
batteries. The data gathered from industry reports, government documents, scholarly works,
and stakeholder interviews will help to complete an in-depth analysis of the present situation
and potential developments in sustainable battery end-of-life management. This research
aims to give stakeholders, policymakers, and industry players with a path for collectively
developing a circular economy for lithium-ion batteries that is in line with environmental
preservation and economic growth by integrating scientific work and practical findings.
Keywords: (Li-ion: Lithium-ion battery, Eco-Balance, Value chain, Carbon Footprint, recycling,
reuse, sustainable, Reverse logistic, supply chain management, industrial ecology)
1.1. Research objectives
The following are the research's main objectives:
• To assess how reverse logistics procedures are currently being used for retired LIBs
in the American and European markets.
• To recognise barriers and opportunities for creating a sustainable value chain for
retired LIBs.
• To provide strategies and suggestions for putting into place a sustainable value chain
in both markets
1.2. Research questions
In this research researcher going to answer the main research question and sub research
questions which are: “Which are the best sustainable practices for the reverse logistics of
retired lithium-ion batteries in the American and European market.”
“What roles do legal frameworks, technological advancements, and stakeholder engagement
play in the development and implementation of a sustainable value chain for the reverse
logistics of retired lithium-ion batteries in the American and European markets?”
1.3. Problem Statement
Battery consumption has significantly increased because of the growing use of lithium-ion
batteries (LIBs) in electronic devices, electric cars, and renewable energy systems. Although
LIBs have exceptional energy storage capacities, managing them at the end of their useful
lives poses significant environmental and resource issues. With an emphasis on the American
and European markets, this study intends to address the challenging problem of creating a
viable value chain for the reverse logistics of decommissioned LIBs. The correct management
of retired LIBs becomes a top priority as societies work to switch to cleaner energy sources
and circular economies. These batteries, which contain priceless components like lithium,
cobalt, and nickel, have the potential to lower the demand on the extraction of primary
resources, reduce e-waste, and aid in the preservation of natural resources. However, there
are considerable obstacles to developing an effective and long-lasting reverse logistics system
due to the absence of logical legal frameworks, technical advancements, and stakeholder
participation. With a particular focus on the American and European markets, the purpose of
this study is to examine the challenges, opportunities, and strategies involved in developing a
sustainable value chain for the reverse logistics of retired lithium-ion batteries. This study aims
to inform policy suggestions and industry practises that support a circular economy, resource
efficiency, and environmental sustainability by examining the interaction of regulatory,
technological, and stakeholder elements. The study's variables centre on same points
regulatory frameworks, technological advancements, and stakeholder engagement. This
study was inspired by the growing understanding of the negative environmental effects of
incorrect LIB disposal and the potential economic value of retired batteries. The need to
manage the end-of-life phase of LIBs is constantly highlighted by the quick development of
technology, particularly in electric vehicles and renewable energy systems.