Exploring Circular Business Model Archetypes for Advancing Battery Circularity: a Path Towards Climate-neutrality

Abstract

The purpose of this study is to identify viable archetypes of circular business models for advancing battery circularity, such as second-life and recycling, which are crucial for achieving the targets of net-zero emission vehicles by 2030. To facilitate this transition, firms operating in the electric vehicle (EV) battery ecosystem must reassess their methods of value creation, capture, and delivery. Despite the promising solutions of EV battery circularity, many vehicle manufacturers and stakeholders in the battery ecosystem struggle to adapt their organizations due to a lack of insights into suitable circular business models. The data collected from 15 companies in the EV battery ecosystem encompassed 24 in-depth semi-structured interviews and 22 workshops. The study proposed eight archetypes of circular business models for battery circularity, including product life extension, refurbishing, battery as a service, charging infrastructure as a service, gap-exploiter model, remanufacturing, total energy management solutions, and recycling. Furthermore, the paper elucidated key dimensions of business models, including value proposition, value co-creation, value delivery, and value capture, for all eight archetypes. By presenting these distinct archetypes, we provide a comprehensive understanding in implementing circularity within the battery industry, offering actionable insights for businesses, policymakers, and stakeholders committed to sustainable energy transitions. This research contributes to the theory of circular business models in general, with specific relevance to EV battery circularity.