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Toward more efficient formal recycling of electric vehicle batteries: a choice-driven game-theoretic approach

Author

Listed:
  • Lin, Jing
  • Huang, Xingjun
  • Lin, Yun
  • Liu, Feng
  • Zhou, Lin
  • Zhou, Fuli

Abstract

The rapid expansion of the electric vehicles (EVs) market is burdening the formal recycling capacity for retired batteries. However, existing studies tend to analyze policy-oriented corporate recycling operations, neglecting ways to improve the formal recycling capacity of EV batteries. Thus, we developed a choice-driven game-theoretic model by considering EV owners' recycling preferences, to analyze the interactions among an original equipment manufacturer (OEM), a third-party recycler (TPR), and EV owners under an extended producer responsibility (EPR) scheme, with the aim of enhancing the industry's formal recycling capacity. Results indicate that only when EV owners prefer the OEM channel relatively more than TPR's, joint operation strategy can simultaneously increase the total recycling volume and profit for the OEM and TPR. At this point, the OEM-TPR alliance will raise their buyback price. Compared with the guiding EPR scheme, mandatory EPR scheme increases the OEM's recycling volume at the expense of the TPR's market share under independent operation, while enhancing the recycling volume for both parties under joint operation. However, the EPR recycling target has no effect on formal recycling volume. These findings inform government policy design and corporate recycling decisions to enhance the formal recycling capacity of EV batteries.

Suggested Citation

  • Lin, Jing & Huang, Xingjun & Lin, Yun & Liu, Feng & Zhou, Lin & Zhou, Fuli, 2026. "Toward more efficient formal recycling of electric vehicle batteries: a choice-driven game-theoretic approach," International Journal of Production Economics, Elsevier, vol. 299(C).
    • Handle: RePEc:eee:proeco:v:299:y:2026:i:c:s092552732600160x
    DOI: 10.1016/j.ijpe.2026.110069
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