Analysis of the life cycle and circular economy strategies for batteries adopted by the main electric vehicle manufacturers

Abstract

In response to escalating environmental concerns and the imperative for a transition to a more sustainable economy, the European Union enacted a new regulation on the electric battery market in July 2023. This regulation integrates the principles of the circular economy, as outlined in the European Green Deal, addressing all phases of the battery life cycle, including the mining of raw materials, product design, production processes, reuse, and recycling. In light of this development, the principal manufacturers of electric vehicles (EVs) and hybrid electric vehicles (HEVs) have undertaken various circular economy (CE) and life cycle (LC) strategies. Their objective is to align their operations with these new regulatory requirements and enhance their sustainability credentials. The global automotive industry, encompassing thousands of entities with an annual turnover exceeding USD 3 trillion, is a significant economic sector. Within this industry, it is estimated that more than 50 manufacturers are involved in the production of EVs, ranging from established automakers to emerging startups. This study applies content analysis to obtain qualitative and quantitative information from data disclosed by companies and organizations, with a specific focus on entities that currently feature EVs or HEVs. The methodology involves examining publicly available reports and corporate disclosures to assess industry trends and regulatory compliance. For this purpose, the analysis selected the 10 largest EV manufacturers in the world, based on sales reports provided by the manufacturers themselves and their respective market shares, as reported by automotive news portals and blogs. The evaluation of their actions was derived from the annual sustainability reports of these companies, with the aim of identifying the practices already implemented and their anticipated contributions to extending battery life and minimizing environmental impact.