Business Models for Repurposing a Second-Life for Retired Electric Vehicle Batteries

Abstract

The rapid development of electric vehicles (EVs) has caused a problem for the industry: what happens to the batteries at the end of their useful life in EVs? Repurposing those batteries for a less-demanding second-life application, e.g. stationary energy storage, could provide a potential solution to extract more value than just recycling or disposal. This paper explores the current battery second use (B2U) business models and the key challenges of implementing B2U. Based on empirical interview data from stakeholders involved in B2U, this paper presents a typology of current B2U business models—standard, collaborative and integrative business models—and offers implications for designing business models that incorporate sustainability at the core. The findings also show that innovative business model is a key to addressing the B2U challenges and overcoming the ‘inferiority’ of second-life batteries as used products.