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.

1. Introduction

The evolution of storage batteries for electric vehicles has been one of the industry’s main challenges, particularly regarding stability and energy efficiency in extended cycles. Recent studies on solid-state batteries have demonstrated promising advances in improving the interface between the electrode and the electrolyte, reducing contact losses and increasing ionic conduction efficiency. Lyu et al. [1] developed a pre-grafted solid polymer electrolyte (PGSPE), which forms a permeable, void-free interface between the electrode and the electrolyte during charge and discharge cycles. This advancement significantly enhances the stability of potassium- and lithium-ion batteries at high voltages, enabling stable cycles beyond 2000 cycles at 4.5 V and over 500 cycles at 4.6 V, with high Coulombic efficiency. The adoption of such technologies could represent a milestone in extending the lifespan of electric vehicle batteries, aligning with circular economy strategies by minimizing degradation and the need for new material extraction [1].

The global electric vehicle (EV) and hybrid electric vehicle (HEV) market has experienced significant growth in recent years. This surge is attributable to technological advancements, stricter environmental regulations, and government incentives. In 2022, global electric vehicle sales reached 10.5 million units, representing 14% of new car sales, with global revenue exceeding USD 425 billion [2]. By 2023, sales had increased further, with an estimated 14 million units sold, accounting for approximately 18% of global car sales. This reflects a 35% growth compared to the previous year [3], underscoring the impact of incentive policies and the rising demand for vehicles with lower environmental impacts. Currently, the global automotive sector includes approximately 50 major EV and HEV manufacturers among more than 200 active automakers worldwide [3]. However, about 15 companies, including giants like Tesla, BYD, and Volkswagen, lead the development and production of electric vehicles and dominate the market [4].

The total number of EVs on global roads has reached 40 million units, marking a significant milestone in the electrification of the automotive sector [3]. This achievement has been driven primarily by markets in China, Europe, and the United States, which together account for nearly 95% of global electric vehicle sales [5]. Specifically, China was responsible for approximately 60% of global sales, with over 8 million new electric vehicle registrations in 2023 [6]. In Europe, nearly 3.2 million new registrations were recorded, and in the United States, sales grew by more than 40% compared to 2022, with 1.4 million electric vehicles sold [3].

The circular economy (CE) plays a vital role in strengthening sustainability in the automotive sector, especially in the management of electric vehicle batteries. The CE proposes a closed cycle in which materials are reused, recycled, and remanufactured, reducing dependence on virgin raw substances such as lithium and cobalt, which have significant environmental and social impacts [7]. The companies featured in this study adopt battery remanufacturing practices, providing a ’second life’ to these components in energy storage systems. The repurposing of EV batteries for stationary applications presents significant environmental benefits when analyzed from a life cycle perspective [8]. After their use in EVs, these batteries retain approximately 80% of their storage capacity, making them suitable for reuse in energy systems with lower demand. This secondary use extends the battery’s life cycle, reducing the need for raw material extraction and mitigating the environmental impact associated with the production of new batteries [9]. This approach extends the useful life of batteries and minimizes their environmental impact.

Life cycle assessment (LCA) is critical for understanding and mitigating environmental impacts across all stages of the battery life cycle. It enables companies to identify key areas of energy consumption and carbon emissions, from raw material extraction to end-of-life disposal [10]. Recent studies have highlighted that lithium-ion battery production contributes significantly to carbon emissions. Therefore, recycling and material reuse are essential for enhancing the sector’s sustainability [11]. The systematic application of LCA has allowed companies to develop more effective strategies for reducing their environmental footprints, especially in markets with stringent regulations, such as Europe [2].

The importance of CE and LCA for battery sustainability has been underscored by the introduction of new regulations. The recent European battery regulation, enacted in July 2023, has set a new global benchmark by imposing stricter standards for battery production, use, and disposal [12]. This legislation aims to ensure that batteries used in the European market are produced sustainably and with lower environmental impacts, in alignment with CE principles. Companies aiming to operate in the European market must rapidly adapt to these requirements, which include mandatory recycling and minimizing environmental impacts from raw material extraction to the product’s end of life [13].

The compliance deadlines with these regulations are critical for companies to maintain their competitiveness in the highly regulated European market. A gradual adaptation to these requirements not only ensures their market presence but also prepares them for meeting future regulatory demands in other markets [14]. Moreover, the European Union often sets global regulatory trends, making adherence to these standards crucial for companies aiming to maintain an international presence and solidify their leadership in innovation and sustainability within the automotive sector [10].

2. The Influence of Regulation on CE and LCA Practices in the Sector

The recently enacted European Union regulation, integrating principles of the circular economy, as outlined in the European Green Deal, comprehensively addresses the critical aspects of the life cycle of electric batteries. This regulation encompasses all stages, from raw material extraction through design, production, reuse, to recycling, establishing strict and comprehensive guidelines [12].

Aligned with the climate neutrality and CE objectives of the European Green Deal, the regulation represents a significant step forward in promoting sustainability within the battery sector. It not only reinforces the EU’s commitment to sustainability but also establishes a robust regulatory framework expected to profoundly and enduringly shape the global battery industry by imposing new standards of sustainability and corporate responsibility [12].

The European Union’s battery regulation, enacted in July 2023, establishes a new global benchmark by imposing stricter standards for battery production, use, and disposal, in alignment with the principles of the circular economy and climate neutrality [12]. This regulation encompasses all stages of the battery life cycle, from raw material extraction to recycling, ensuring compliance with sustainability objectives. The regulation includes mandatory requirements for transparency, traceability, minimum recycled content, and extended producer responsibility. These provisions aim to enhance sustainability across the battery supply chain while minimizing environmental impact.

In a broader context, the EU regulation may catalyze increased demand for recycled materials and stimulate research and development in emerging technologies, such as solid-state batteries, which offer greater efficiency and lower environmental impact. By setting stringent standards, the EU positions itself as a global regulatory leader in the energy transition, directly influencing the strategies of major electric vehicle manufacturers worldwide.

Based on the analysis conducted in this report, the table below highlights some of the main critical aspects addressed by the regulation.

Table 1. Critical aspects addressed in the regulation.

No.	Descriptions
1	Transparency and traceability
2	Extended producer responsibility
3	Minimum recycled content standards
4	Collection and recycling targets
5	Innovation and sustainable design
6	Social and environmental impact of mining
7	Compliance and enforcement
8	General implementation of the regulation

Prepared by the authors based on [9].

highlights the main critical aspects addressed by EU regulations. Each of these aspects plays an essential role in the implementation and effectiveness of the regulatory guidelines. In this way, the table summarizes the challenges and strategic directions of regulation, providing a comprehensive overview of the critical factors involved.

The following sections detail the specific aspects of the regulation and its requirements:

• Transparency and Traceability

The regulation establishes strict traceability requirements to ensure that batteries are monitored throughout their entire life cycle. This includes introducing a “digital passport” system for all batteries, containing detailed information on battery composition, raw material origins, production history, and performance data [12].

This transparency ensures that all stakeholders, from manufacturers to end consumers, have access to critical information about the environmental impact and sustainability of batteries.

• Extended Producer Responsibility

Extended producer responsibility oversees a regulation that mandates battery manufacturers to assume full responsibility for the life cycle of their products. This encompasses the collection and recycling of batteries once they have reached the end of their life. By enforcing this requirement, the policy incentivizes manufacturers to engineer batteries that are simpler to disassemble, reuse, and recycle. Consequently, this aligns economic incentives with sustainability objectives [12].

• Minimum Recycled Content Standards

One of the regulation’s most innovative provisions is the requirement for batteries to contain a minimum number of recycled materials. This mandate applies to critical metals such as lithium, cobalt, and nickel, promoting the use of recycled materials and reducing reliance on the mining of new resources. This requirement is expected to drive demand for advanced recycling technologies and boost the secondary materials economy in Europe [12].

• Collection and Recycling Targets

The regulation establishes ambitious targets for the collection and recycling of used batteries. EU member states are required to ensure that an increasing percentage of batteries are collected and recycled, with progressively higher targets extending through 2030. Moreover, the regulation delineates minimum recycling rates for various materials contained within batteries, guaranteeing that a significant proportion of valuable materials are recovered and reintegrated into the economy [12].

• Innovation and Sustainable Design

The regulation fosters innovation in battery design, promoting the development of batteries that are more easily repaired, upgraded, and recycled. This may encompass modular battery configurations wherein individual components can be replaced or upgraded without the necessity to discard the entire battery. Furthermore, the regulation advocates for the adoption of production technologies that aim to minimize environmental impacts, including reducing energy and water consumption during the production phases [12].

• Social and Environmental Impact of Mining

The regulation explicitly addresses the social and environmental concerns associated with the mining of raw materials for batteries, such as lithium and cobalt. It mandates that companies operating within the supply chain demonstrate compliance with environmental and human rights standards. These provisions are designed to mitigate the negative impacts of mining and to promote more sustainable and ethical practices in the extraction of raw materials [12].

• Compliance and Enforcement

To ensure the effective implementation of the regulation, the EU has established rigorous enforcement mechanisms. Companies failing to meet the requirements may face significant penalties, including fines and market restrictions. The EU will also provide technical and financial support to member states to assist in transitioning to these new standards [12].

• General Implementation of the Regulation

The regulations came into force immediately after their official publication in July 2023, but some requirements have specific deadlines for full implementation.

Table 2. General implementation of the regulation.

Date	Action
2024	Traceability System and Digital Passport: Companies are required to implement a digital passport system for batteries, which must be fully operational by the end of 2024. This system will encompass detailed information regarding the origins of raw materials, battery composition, production history, and performance data.
2027	Recycled Content: Starting in 2027, batteries sold within the European Union must contain a minimum percentage of recycled materials. This percentage, determined by various critical materials such as lithium, cobalt, and nickel, will undergo periodic reviews and may increase over time.
2030	Recycled Content: By 2030, the minimum recycled content requirements will be elevated, reflecting the growing capacity of the industry to recycle and reuse materials efficiently.
2025	Collection and Recycling Targets: By 2030, the recycled content requirements will be heightened to reflect the industry’s growing capacity to recycle and reuse materials efficiently.
2030	Collection and Recycling Targets: More ambitious collection and recycling targets are to be met, necessitating a higher percentage of used batteries to be collected, and minimum recycling rates for critical materials such as cobalt, lithium, and nickel must be achieved.
2025	Sustainable Design and Innovation: Sustainable design guidelines must be fully implemented, including requirements for easier battery disassembly and recycling. Companies are required to modify their design and production processes to adhere to these new standards.
2025	Extended Producer Responsibility: By 2025, extended producer responsibility must be fully realized. From this year forward, manufacturers will bear full responsibility for the entire life cycle of their batteries, encompassing collection and recycling at end of life.
2025	Sustainable Mining and Human Rights: By 2025, companies must demonstrate adherence to sustainability and human rights standards in their raw material mining practices. This involves implementing responsible practices within supply chains to ensure minimal social and environmental impacts.
2030	Regulation Reviews and Updates: The regulation mandates periodic reviews, with a significant review scheduled for 2030. These reviews will assess progress and adjust goals and requirements as necessary to ensure the achievement of sustainability objectives.

Prepared by the authors based on deadlines set in the literature [9].

shows the main deadlines for implementing EU regulations, highlighting the stages and requirements set for the coming years. The adoption of these measures allows the industry and countries sufficient time to adapt to the new guidelines. Each milestone represents an advance in the quest for greater sustainability, encouraging practices such as traceability, increased recycled content, collection and recycling targets, sustainable design, and extended producer responsibility.

These timelines reflect a phased approach to implementing the regulation, allowing both the industry and countries sufficient time to adapt to the new requirements. This approach facilitates continuous progress towards sustainability and the development of a circular economy.

3. Impacts of the New Regulation on Manufacturers

Following the enactment of the regulation in July 2023, several electric vehicle manufacturers have taken significant steps to align with the new requirements:

• Accelerated Investment in Recycling

Since the regulation’s enactment, companies such as Volkswagen and Renault have increased their investments in battery recycling facilities within Europe. This initiative aims to meet the recycling targets for critical materials established by the regulation [15,16].

• Redesign of Products and Processes

In response to the new regulation, Tesla and BYD have initiated the development of modular batteries that facilitate disassembly and recycling. Additionally, they have begun incorporating recycled materials into new batteries for electric vehicles [17,18].

• Formation of Strategic Partnerships

Aligning with the new regulation, BMW and Stellantis have formed partnerships with specialized recycling companies. These partnerships ensure compliance with the new circularity and material traceability standards, which are essential for long-term sustainability [17,19].

• Transparency and Traceability Initiatives

Ford and Mercedes-Benz are implementing digital battery tracking systems to monitor the materials’ origins, ensuring they are ethically and sustainably sourced, as mandated by the regulation [20,21].

• Regulatory Impact

The new regulation imposes strict recycling and reuse targets. Automakers have rapidly adapted their processes to avoid penalties and maintain competitiveness in the European market. These initiatives span from optimizing the supply chain to developing new, more sustainable battery technologies [12].

• Post-Regulation Research and Development

Research and development (R&D) in new battery technologies, such as solid-state batteries, has significantly accelerated since the implementation of the regulation. These efforts aim to improve batteries’ efficiency, safety, and recyclability [22].

4. Methods

The global automotive market is vast and diverse, encompassing a wide array of manufacturers that produce both light and heavy vehicles. In 2023, the market generated approximately USD 3.8 trillion, with total vehicle production reaching around 90 million units. Notably, the majority of these were internal combustion engine vehicles [23]. Nevertheless, an increasingly significant segment of this market comprises manufacturers specializing in EVs and HEVs. This segment is dominated by a select group of approximately 50 global manufacturers, amongst which 10 companies are particularly notable for their market share, both in sales volume and in their influence on the development of sustainable technologies [24].

Content analysis, which is both a qualitative and quantitative technique, was employed as the primary methodological approach in this study. Widely applied in sustainability research, content analysis allows for the systematic interpretation and categorization of textual data [4,25].

The 10 leading companies, which include both traditional automakers and new entrants focused exclusively on EVs, account for a substantial portion of EV and HEV production. Altogether, they represent over 80% of the global market for electrified vehicles, boasting an annual sales volume exceeding 10 million units [6]. Their market dominance is underpinned by a blend of innovation capability, scalable production, and aggressive market penetration strategies in emerging economies [23]. Furthermore, these companies are leading the transformation within the automotive sector in alignment with increasing regulatory demands for reduced emissions and enhanced environmental sustainability [12].

In the realm of CE and LCA strategies for vehicle batteries, these 10 companies play an essential role. The surging demand for EVs and HEVs has prompted these manufacturers to adopt and implement advanced CE and LCA practices aimed at maximizing resource efficiency and minimizing the environmental impact throughout the battery life cycle [26]. These strategies are vital for compliance with global regulations, such as the European Union’s new battery regulation, and for maintaining competitiveness in a market where sustainability is increasingly regarded as a key differentiator [27].

This study focuses on analyzing CE and LCA strategies for EV and HEV batteries within the top 10 companies in the automotive sector, ranked by their global market share [5]. Leading the EV and HEV market are Tesla, BYD, Volkswagen, BMW, General Motors, Hyundai, Ford, Renault, Stellantis, and Toyota [24]. These companies represent the largest sales volumes and sectoral influence and spearhead innovation and implement sustainable practices, thereby shaping the future of the global automotive industry (Figure 1).

This case study aims to analyze how each of these companies positions themselves in the global EV and HEV market, highlighting the main actions each has implemented to meet the growing demands for sustainability and technological innovation based on their respective sustainability reports.

(a)

Selection of Companies and Data Sources:

The 10 largest global manufacturers of EVs and HEVs were selected based on the following:

Reported sales volume in 2023;

Market share according to publicly available reports and automotive news portals.

The data analyzed were taken from the following:

Latest sustainability reports (2022–2023) made available by the companies;

Publications on specialized portals [3,6].

(b)

Content analysis procedure:

Content analysis was conducted in three stages, following Bardin’s principles [28]. In addition, methodological adaptations based on recent approaches in the literature were considered, including specific categorization techniques and qualitative data adjustments for assessing sustainability in the automotive sector [29].

(c)

Data collection:

The companies’ sustainability reports and corporate documents were obtained directly from their official websites and trusted platforms.

Inclusion criteria included documents detailing CE and LC practices published between 2022 and 2023.

(d)

Categorization and coding:

A previously established matrix of categories was used, including aspects such as the following:

• Battery recycling;
• Sustainable design;
• Carbon reduction targets;
• Implementation of second-life practices for batteries.

The data were coded manually and using the NVivo 14 software, ensuring the traceability of the information analyzed.

(e)

Data validation:

The extracted data were triangulated with independent sources, such as reports from international organizations [21] and recent academic articles, to increase reliability. Moreover, an internal peer review involving two sustainability experts was conducted to validate the interpretations.

(f)

Metrics and Comparative Analysis:

The companies’ practices were compared using standardized metrics, such as the following:

Volume of recycled materials (in tons);

Percentage of carbon reduction in production processes;

Investments in EC technologies reported in USD.

The comparative analysis sought to identify trends and good practices that can be replicated by other companies in the automotive sector, contributing to the advancement of EC and LC strategies.

(g)

Limitations:

Although the method used is robust, we recognize the limitation of relying on data reported by companies, which may be biased. To mitigate this issue, data triangulation and validation with experts were employed.

The inclusion of smaller companies and startups could provide a broader perspective on circular economy practices [7,14]. Additionally, the data analyzed came primarily from sustainability reports and corporate disclosures, which may present bias by emphasizing positive aspects and underestimating challenges [10,13]. Another limitation relates to the scope of the supply chain and raw material extraction, which are essential aspects of sustainability but were not explored in depth [30,31]. The influence of regulatory and regional variations is also noteworthy, as the analysis focused on highly regulated markets such as the European Union, the United States, and China, without detailing countries with less stringent regulations [32,33].

Matrix of Categories for Content Analysis

The matrix of categories used in this research was developed to organize and interpret the CE and LCA strategies adopted by the main manufacturers of EVs and HEVs. The matrix was structured to ensure a systematic and in-depth analysis of the sustainable practices implemented by these companies (Figure 2).

Data coding was conducted by combining a manual approach with the use of the NVivo 14 software. This process enabled the traceability of the information and also ensured the consistency of the information found, providing a basis for interpreting the results. It sought to reflect the strategies reported by the companies as well as the possibilities of a comparative assessment between the different manufacturers.

Authors such as [7] point out that the transition to a CE requires a clear mapping of the practices adopted by companies in order to identify opportunities for improvement and replicability. By applying this approach, the matrix structured in this research made it possible to highlight how different manufacturers are dealing with challenges such as recycling batteries, reducing their carbon footprint, and adopting innovative technologies for greater energy efficiency. The literature points out that well-defined strategies are essential to ensure a sustainable and competitive transition for the automotive sector [10].

In addition, the categorization adopted in this study is in line with the principles discussed by [14], which reinforce the importance of circularity in industry as a way to mitigate environmental and economic impacts.

This matrix served as an essential tool for extracting and analyzing data from sustainability reports of leading automotive manufacturers, including Tesla, BYD, Volkswagen, and BMW. The inclusion of these companies allowed for a comparative analysis of diverse strategies in battery recycling, carbon footprint reduction, and technological advancements, thereby offering a comprehensive overview of sustainability practices within the sector.

By establishing analysis criteria based on industry trends and emerging regulatory frameworks, the matrix provides insights into corporate sustainability actions and serves as a benchmark for future research exploring the intersection between technological innovation and sustainability in the automotive industry.

However, it is important to note that not all the analyzed companies provide detailed data on their recycling and material reuse processes. While some manufacturers, such as Ford, report concrete figures—stating that over 85% of their vehicle components and materials are recycled and reused at the end of their life cycle—others offer only general commitments to the CE without quantifiable metrics. This discrepancy in data transparency underscores the challenges of obtaining accurate and comparable sustainability information across manufacturers.

The absence of standardized quantitative data in some corporate reports highlights the need for further discussions on harmonizing sustainability disclosures. The implementation of stricter environmental regulations and standardized impact measurement frameworks could contribute to enhanced clarity and comparability in corporate sustainability reporting. Consequently, this study reinforces the necessity for future research to explore methodologies that make environmental metrics more accessible and reliable for researchers, investors, and policymakers.

5. Circular Economy and Life Cycle: Manufacturers’ Strategies

In recent years, the growing emphasis on sustainability and CE strategies has significantly reshaped the automotive industry, particularly in the context of EVs and HEVs. Leading manufacturers in this sector have increasingly aligned their business practices with the principles of the circular economy, focusing on reducing the environmental impact through the efficient use of resources and promoting the recycling of vehicle components, especially batteries. This section examines the strategies adopted by the top 10 companies in the global EV and HEV market, highlighting their key practices related to LCA and CE. By exploring these manufacturers’ efforts in battery recycling, the decarbonization of supply chains, and innovation in battery technologies, we gained insight into how these industry leaders are shaping a more sustainable future for the automotive sector.

Table 3. Description of Tesla.

Description	Data
Foundation	2023
Ownership	Tesla is a publicly traded company with the ticker symbol TESLA, listed on the Nasdaq. Major shareholders include Elon Musk, Baillie Gifford & Co., and Vanguard Group [34]
Market value	USD 840 billion [34]
Headquarters	Palo Alto, CA, USA
Factories	8 (Freemont, Nevada, New York, Texas, Shanghai, Berlin, Kato, and Lathrop) [35]
Annual revenue	2022: USD 81.5 billion [34]
Market share	2023: USD 100 billion [34]
Vehicle sales volume	Approximately 20% of the global electric vehicle market [24]. 2023: 1.3 million units [18]
Number of employees	Approximately 290,000 (2023) [35]

Source: Prepared based on public data, company disclosures, and data obtained through research in third-party reports.

shows Tesla’s description.

Table 4. Key practices identified for CE and LCA in batteries.

No.	Description
1	Circular economy and battery recycling
2	Decarbonization of the battery supply chain
3	Innovation in battery technologies

Source: Prepared by the authors based on the sustainability report published by the company [18].

shows the main practices adopted by Tesla in the context of the CE and the LCA of batteries, as highlighted in the “Tesla Impact Report 2023”. These initiatives reinforce the company’s commitment to sustainability, from recycling and reusing batteries to decarbonizing the supply chain. In addition, continuous innovation in battery technologies demonstrates the quest for greater energy efficiency and reduced environmental impact, contributing to the advancement of sustainable mobility and the circular economy in the automotive sector.

Tesla is firmly committed to creating a closed loop for the batteries of its electric vehicles, ensuring materials are continuously recovered and reused. In 2023, Tesla successfully recycled sufficient materials to produce 43,000 Model Y vehicles, highlighting the efficiency of its recycling operations. This method significantly reduces the need for new material extraction while also minimizing waste and the environmental impact associated with battery disposal.

• Decarbonization of the battery supply chain

Tesla acknowledges that a considerable portion of the carbon emissions in its supply chain are linked to battery production, particularly in the refining processes of lithium, nickel, and cobalt. The company is implementing measures to increase transparency and improve traceability in the battery supply chain, enabling more targeted actions to reduce emissions. Furthermore, Tesla is collaborating with its suppliers to ensure that emission reduction targets are consistent with industry best practices.

• Innovation in Battery Technologies

Tesla continues to invest in research and development to enhance the efficiency and sustainability of its batteries. This includes the development of new battery technologies aimed at increasing energy density and reducing environmental impacts during production and use. These efforts are vital for extending battery life cycles and reducing the carbon footprint of Tesla’s electric vehicles, thereby promoting a faster transition to sustainable mobility.

• Analysis of Key CE and LCA Practices

The initiatives described in the “Tesla Impact Report 2023” underscore Tesla’s ongoing commitment to sustainability, particularly in relation to the life cycle of its electric vehicle batteries and the promotion of a circular economy. By concentrating on material recycling, supply chain decarbonization, and technological innovation, Tesla is paving the way toward a more sustainable future in the automotive sector. Every used battery from R&D or returned from the market that cannot be remanufactured is recycled. Tesla’s batteries, including those utilized in its vehicles and other energy storage products, are designed to last many years. Consequently, the company still receives a limited number of batteries from the market.

Table 5. Description of BYD.

Description	Data
Foundation	1995
Ownership	BYD is a publicly traded company with the ticker 1211.HK, listed on the Hong Kong Stock Exchange. Major shareholders include Wang Chuanfu (founder and CEO) and Berkshire Hathaway [36].
Market value	USD 125 billion [36].
Headquarters	Shenzhen, China [37].
Factories	More than 30 worldwide [37].
Annual revenue	2022: USD 57.4 billion [36]. 2023: USD 70 billion [36].
Market share	Approximately 18% of the global electric vehicle market (2023) [24].
Vehicle sales volume	2022 Electric vehicles: 911,000 units. Hybrids: 946,000 units [38]. 2023 Electric vehicles: 1.3 million units. Hybrids: 1.2 million units [38].
Number of employees	Approximately 290,000 (2023) [37].

Source: Prepared based on public data, company disclosures, and data obtained through research in third-party reports.

shows BYD’s description.

Table 6. Key practices identified for CE and LCA in batteries.

No.	Description
1	Circular economy strategy
2	Battery recycling and reuse
3	Sustainable supply chain management
4	Technological innovation and product development

Source: Prepared by the authors based on the sustainability report published by [39].

shows the main practices adopted by BYD in the context of the CE and the LCA of batteries, as highlighted in the “2023 Corporate Social Responsibility Report”. These initiatives reflect the company’s commitment to sustainability, ranging from circular economy strategies to battery recycling and reuse. In addition, sustainable supply chain management and technological innovation in product development reinforce the search for greater efficiency and reduced environmental impact throughout the life cycle of its electric vehicles.

• Circular Economy Strategy

BYD adopts a proactive approach to the circular economy, particularly concerning the battery life cycle. The company invests in advanced recycling technologies to maximize the recovery of critical materials, such as lithium and cobalt, used in electric vehicle batteries. This recycling process reduces the need for new resource extraction and minimizes the environmental impacts associated with improper battery disposal.

• Battery Recycling and Reuse

BYD recognizes the importance of managing the complete life cycle of its vehicle batteries. The company develops and implements recycling systems that allow for the reuse of essential materials, significantly reducing waste. Through strategic partnerships and technological investments, BYD aims to increase recycling rates and ensure that end-of-life batteries are reintegrated into the production cycle.

• Sustainable Supply Chain Management

The supply chain represents another critical focus for BYD in its pursuit of sustainability. The company adopts stringent measures to monitor and manage its operations’ environmental and social impacts, ensuring that its suppliers adhere to sustainable practices and respect human rights. This focus is particularly critical in the supply chain for materials used in batteries, where BYD works to ensure that extraction and refining processes are conducted responsibly.

• Technological Innovation and Product Development

Innovation is central to BYD’s strategy, as the company is continuously developing new technologies to improve energy efficiency and reduce the environmental impact of its products. This includes the development of batteries with higher energy density and lower ecological impact as well as creating solutions for sustainable public transportation, such as electric buses and trains, integral to BYD’s vision for a greener future.

• Analysis of Key CE and LCA Practices

The initiatives outlined in BYD’s 2023 Corporate Social Responsibility Report demonstrate a profound commitment to sustainability and the circular economy, particularly regarding the life cycle of electric vehicle batteries. The company not only aims to reduce the environmental impact of its operations but also leads efforts to create a closed life cycle for batteries, where materials are continuously recycled and reused. These efforts position BYD as a global leader in the transition to a circular economy, showcasing how an integrated approach can significantly contribute to environmental sustainability in the automotive sector.

Table 7. Description of Volkswagen Group.

Description	Data
Foundation	1937
Ownership	Volkswagen AG is a publicly traded company with the ticker symbol VOW3, listed on the Frankfurt Stock Exchange. The majority of its shares are held by Porsche Automobil Holding SE, controlled by the Porsche and Piëch families [40].
Market value	EUR 70 billion [40].
Headquarters	Wolfsburg, Germany
Factories	Approximately 120 factories worldwide [41].
Annual revenue	2022: EUR 279.2 billion [42]. 2023: EUR 290 billion [42].
Market share	Approximately 10% of the global electric vehicle market (2023) [24].
Vehicle sales volume	2022 Electric vehicles: 572,100 units. Hybrids: 310,000 units. Internal combustion engine: 7.42 million units [42]. 2023 Electric vehicles: 720,000 units. Hybrids: 340,000 units. Internal combustion engine: 7.20 million units [42].
Number of employees	Approximately 675,000 (2023) [43].

Source: Prepared based on public data, company disclosures, and data obtained through research in third-party reports.

shows Volkswagen Group description.

Table 8. Key practices identified for CE and LCA in batteries.

No.	Description
1	Circular economy and use of recycled materials
2	Decarbonization and life cycle management of batteries
3	Innovation in battery technologies and recycling

Source: Prepared by the authors based on the sustainability report published by [16].

shows the main practices adopted by Volkswagen in the context of the CE and the LCA of batteries, as highlighted in the Volkswagen Group’s “2023 Sustainability Report”. These initiatives demonstrate the company’s commitment to sustainability, ranging from the use of recycled materials to decarbonization and battery life cycle management. In addition, continuous innovation in battery technologies and recycling processes reinforces the search for more efficient and environmentally responsible solutions in the automotive industry.

• Circular Economy and Use of Recycled Materials

Volkswagen recognizes the importance of decoupling economic growth from consuming finite natural resources. The company has adopted a proactive approach to the circular economy, aiming to increase the use of recycled materials in its production processes. This includes establishing closed material loops, where electric vehicle batteries are designed to facilitate recycling. In this manner, Volkswagen ensures that critical components such as lithium, nickel, and cobalt can be recovered and reused in the production of new batteries, minimizing dependency on virgin natural resources and reducing environmental impact.

• Decarbonization and Life Cycle Management of Batteries

A central pillar of Volkswagen’s sustainability strategy is the decarbonization of its operations and products. The company has implemented the Decarbonization Index, which tracks CO₂ emissions throughout the entire vehicle life cycle, including production, use, and battery recycling. Volkswagen has committed to reducing the DKI by 30% by 2030, using 2018 as a baseline, without relying on emissions offsets. This measure underscores Volkswagen’s commitment to ensuring that its electric vehicles are more efficient during use and have a reduced environmental impact throughout their life cycle.

• Innovation in Battery Technologies and Recycling

Technological innovation constitutes a foundational aspect of Volkswagen’s strategy to attain sustainability. The company is channeling investments into cutting-edge technologies that elevate the energy efficiency of batteries and enhance their recyclability. Volkswagen is committed to developing new battery generations that are simpler to disassemble and recycle, a crucial step for completing the material life cycle and reducing the carbon footprint of electric vehicles. Furthermore, Volkswagen is investigating innovative solutions for efficient material recycling to ensure that valuable resources are seamlessly reintroduced into the production chain.

• Analysis of Key CE and LCA Practices

The initiatives detailed in Volkswagen’s 2023 Sustainability Report underscore a definitive commitment to the circular economy and the sustainable life cycle management of electric vehicle batteries. By emphasizing decarbonization, recycling, and material reuse, Volkswagen is a frontrunner in transitioning towards a more sustainable and resilient business model within the global automotive sector. The Volkswagen Group aspires to diminish the average CO₂ emissions per vehicle (encompassing both passenger cars and light commercial vehicles) by 30% by the year 2030, compared to its 2018 levels.

Table 9. Description of BMW.

Description	Data
Foundation	1916
Ownership	BMW AG is a publicly traded company listed on the Frankfurt Stock Exchange under the ticker symbol BMW. Major shareholders include Stefan Quandt and Susanne Klatten [44].
Market value	Approximately EUR 95 billion
Headquarters	Munich, Germany.
Factories	31 factories across 15 countries [45].
Annual revenue	2022: EUR 142.6 billion [46]. 2023: EUR 150 billion [46].
Market share	Approximately 3% of the global electric vehicle market (2023) [24].
Vehicle sales volume	2022 Electric vehicles: 215,755 units. Hybrids: 433,000 units. Internal combustion engine: 1.75 million units [46]. 2023 Electric vehicles: 275,000 units. Hybrids: 450,000 units. Internal combustion engine: 1.70 million units [46].
Number of employees	Approximately 149,000 (2023) [45].

Source: Prepared based on public data, company disclosures, and data obtained through research in third-party reports.

shows BMW’s description.

Table 10. Key practices identified for CE and LCA in batteries.

No.	Description
1	Integration of the circular economy
2	Battery life cycle management
3	Innovation and reuse

Source: Prepared by the authors based on the sustainability report published by [17].

shows the main practices adopted by BMW in the context of the CE and the LCA of batteries, as highlighted in its “2023 Report”. These initiatives reflect the company’s commitment to sustainability, ranging from the integration of circular economy principles to efficient battery life cycle management. In addition, continuous innovation and the reuse of materials reinforce the search for sustainable solutions, contributing to the reduction in environmental impact and the advancement of electric mobility.

• Integration of the Circular Economy

BMW incorporates the circular economy as a central component of its sustainability strategy. The company aims to minimize waste and maximize resource efficiency throughout the product life cycle. Specifically, for electric vehicle batteries, BMW promotes the use of recyclable materials and ensures that up to 90% of the materials used in high-voltage batteries can be recycled, thereby reducing the need to extract new natural resources.

• Battery Life cycle Management

BMW implements a comprehensive approach to battery life cycle management, which includes the sustainable extraction of raw materials, production, and recycling and reuse at the end of their life cycle. The 2023 report highlights the company’s clear decarbonization goals, including a 50% reduction in CO₂ emissions associated with vehicle production by 2030. This target also applies to battery production, where the company invests in technologies that enable cleaner and more efficient manufacturing processes.

• Innovation and Reuse

Technological innovation is fundamental to BMW’s strategy, especially regarding battery sustainability. BMW is developing new technologies that allow batteries to be reused in secondary applications, such as energy storage systems, after their life in vehicles. This approach extends the life of batteries and contributes to the circular economy by reducing the demand for new materials.

• Analysis of Key CE and LCA Practices

As highlighted in the 2023 Report, BMW’s initiatives demonstrate a strong commitment to the circular economy and sustainability in the life cycle of electric vehicle batteries. By promoting recycling practices, decarbonization, and technological innovation, BMW is well positioned to lead the transition to a more sustainable and responsible business model.

Table 11. Description of General Motors.

Description	Data
Foundation	1908
Ownership	General Motors is a publicly traded company listed on the New York Stock Exchange under the ticker symbol ‘GM’. Major shareholders include Vanguard Group, BlackRock, and Capital Research Global Investors [47].
Market value	Approximately USD 50 billion
Headquarters	Detroit, MI, USA.
Factories	Approximately 122 factories in 30 countries [48].
Annual revenue	2022: USD 156.7 billion [49]. 2023: USD 162 billion [49].
Market share	Approximately 4% of the global electric vehicle market (2023) [24].
Vehicle sales volume	2022 Electric vehicles: 387,000 units. Hybrids: 240,000 units. Internal combustion engine: 4.05 million units [49]. 2023 Electric vehicles: 500,000 units. Hybrids: 260,000 units. Internal combustion engine: 4 million units [49].
Number of employees	Approximately 167,000 (2023) [48].

Source: Prepared based on public data, company disclosures, and data obtained through research in third-party reports.

shows General Motors description.

Table 12. Key practices identified for CE and LCA in batteries.

No.	Description
1	Circular economy and battery recycling
2	Battery life cycle management
3	Innovation and sustainability

Source: Prepared by the authors based on the sustainability report published by the company [50].

shows the main practices adopted by General Motors (GM) in the context CE and the LCA of batteries, as highlighted in its “2023 Sustainability Report”. These initiatives demonstrate the company’s commitment to sustainability, including battery recycling strategies, efficient life cycle management, and innovation aimed at sustainable solutions. With these actions, GM seeks to reduce the environmental impact of its electric vehicles and strengthen the transition to a circular economy in the automotive sector.

• Circular Economy and Battery Recycling

GM has implemented robust initiatives to maximize the recycling of materials used in its electric vehicle batteries. The 2023 report highlights that approximately 95% of the raw materials in GM’s EV batteries are recyclable. This practice significantly reduces the reliance on new natural resources while minimizing waste, aligning with the principles of the circular economy. By investing in recycling technologies, GM ensures that critical materials, such as lithium and cobalt, are efficiently reintroduced into the production cycle.

• Battery Life cycle Management

Battery life cycle management is a priority for GM, encompassing everything from design to disposal. The company focuses on developing batteries with greater durability and energy efficiency, extending their useful life and reducing environmental impact. GM’s Ultium platform is designed to be adaptable and reusable across different vehicle types, facilitating the recycling process at the end of the batteries’ life cycle. This systemic approach enables GM to minimize environmental impacts associated with the complete life cycle of batteries.

• Innovation and Sustainability

GM is committed to continuous innovation to enhance the sustainability of its EV batteries. This commitment includes developing new technologies to increase battery efficiency and expanding the charging infrastructure essential for transitioning to a more sustainable mobility system. Additionally, GM’s collaboration with other companies to create a more accessible and sustainable charging ecosystem reinforces the company’s commitment to achieving carbon neutrality by 2040.

• Analysis of Key CE and LCA Practices

GM’s initiatives, as detailed in its 2023 Sustainability Report, exemplify a strong commitment to the circular economy and the sustainable life cycle management of electric vehicle batteries. The company is forging a path towards a zero-emissions future by championing recycling practices, technological innovations, and efficient resource management. These endeavors position GM as a frontrunner in advancing sustainable mobility solutions.

Table 13. Description of Hyundai.

Description	Data
Foundation	1967
Ownership	Hyundai Motor Company is a publicly traded company listed on the OTC Market under the ticker HYMTF. Major shareholders include Hyundai Motor Group and other institutions [51].
Market value	Approximately USD 50 billion (August 2024) [51].
Headquarters	Seoul, Republic of Korea
Factories	34 factories across 10 countries [52].
Annual revenue	2022: USD 105.8 billion [53]. 2023: USD 112 billion [53].
Market share	Approximately 7% of the global electric vehicle market (2023) [24].
Vehicle sales volume	2022 Electric vehicles: 320,000 units. Hybrids: 450,000 units. Internal combustion engine: 3.1 million units [53]. 2023 Electric vehicles: 380,000 units. Hybrids: 470,000 units. Internal combustion engine: 3.0 million units [53].
Number of employees	Approximately 280,000 (2023) [52].

Source: Prepared based on public data, company disclosures, and data obtained through research in third-party reports.

shows Hyundai’s description.

Table 14. Key practices identified for CE and LCA in batteries.

No.	Description
1	Establishing a virtuous battery circulation system
2	Carbon goals and reducing environmental impact
3	Technological innovation and sustainability
4	Strategic partnerships and global expansion

Source: Prepared by the authors based on the sustainability report published by the company [54].

shows the main practices adopted by Hyundai Motor Company in the context of the CE and LCA of batteries, as highlighted in its sustainability report. These initiatives reflect the company’s commitment to maximizing the reuse of resources and minimizing environmental impacts throughout the value chain. Among the actions adopted are the establishment of an efficient battery circulation system, carbon reduction targets, technological innovation aimed at sustainability, and strategic partnerships for global expansion.

• Establishing a Virtuous Battery Circulation System

Hyundai recognizes the importance of creating a circular system that facilitates recycling and promotes the remanufacturing and reusing of EV batteries. As detailed in the 2023 Sustainability Report, the company has advanced its efforts to establish a “virtuous circulation” system for batteries, integrating extended producer responsibility to ensure sustainable management from production to disposal. This approach includes initiatives for collecting and recycling end-of-life batteries and ongoing efforts to improve resource efficiency.

• Carbon Goals and Reducing Environmental Impact

As part of Hyundai’s commitment to achieving carbon neutrality by 2045, the company is focused on reducing its carbon footprint across the entire life cycle of its products. Strategies include increasing energy efficiency in battery production, transitioning to renewable energy sources, and developing more effective recycling technologies. Hyundai is also working to meet the targets set by the RE100 initiative, which requires a complete transition to renewable energy across its global operations by 2045.

• Technological Innovation and Sustainability

Technological innovation is central to Hyundai’s strategy for battery life cycle management. The company has made significant investments in R&D to improve battery durability and recyclability and to develop new energy storage technologies that can be integrated into future vehicle models. These innovations are essential for achieving a low-carbon economy and ensuring that materials used in batteries can be recycled efficiently.

• Strategic Partnerships and Global Expansion

Hyundai has established strategic partnerships with suppliers and other industry players to enhance its battery life cycle management capabilities. These collaborations include working with recycling and remanufacturing companies and research institutions to explore new ways to improve the efficiency of recycling processes. Additionally, the company is expanding its global recycling operations to ensure that used batteries are processed sustainably across all regions where Hyundai operates.

• Analysis of Key CE and LCA Practices

Hyundai Motor Company’s approach to the circular economy and the life cycle of EV batteries reflects a profound commitment to environmental sustainability. By incorporating principles of the circular economy into its operations and pursuing technological innovations that enhance resource reuse, Hyundai is strategically positioned to lead the transition to a more sustainable business model. The company’s initiatives reduce environmental impacts and contribute to developing a more resilient industrial system aligned with global carbon reduction goals.

Table 15. Description of Ford.

Description	Data
Foundation	1903
Ownership	Ford Motor Company is a publicly traded company listed on the New York Stock Exchange under the ticker “F.” The Ford Family maintains significant control through shares with special voting rights [55].
Market value	Approximately USD 60 billion [34].
Headquarters	Dearborn, MI, USA.
Factories	65 factories worldwide [56].
Annual revenue	2022: USD 158.1 billion [20]. 2023: USD 165 billion [20].
Market share	Approximately 5% of the global electric vehicle market (2023) [24].
Vehicle sales volume	2022 Electric Vehicles: 150,000 units. Hybrids: 300,000 units. Internal combustion engine: 3.9 million units [20]. 2023 Electric vehicles: 200,000 units. Hybrids: 320,000 units. Internal combustion engine: 3.8 million units [20].
Number of employees	Approximately 183,000 (2023) [57].

Source: Prepared based on public data, company disclosures, and data obtained through research in third-party reports.

shows Ford’s description.

Table 16. Key practices identified for CE and LCA in batteries.

No.	Description
1	Implementation of a circular economy system
2	Sustainability goals and technological innovation
3	Collaboration and supply chain responsibility

Source: Prepared by the authors based on the sustainability report published by the company [20].

shows the main practices adopted by Ford Motor Company in the context of the CE and LCA of batteries. Ford Motor Company, as detailed in its 2023 Integrated Sustainability and Financial Report, demonstrates a strong commitment to the circular economy and the sustainable life cycle management of EV batteries. Below, the company’s key strategies and progress are outlined.

• Implementation of a Circular Economy System

Ford is committed to establishing a circular economy system that emphasizes battery recycling, remanufacturing, and reusing batteries. The company underscores that over 85% of its vehicle parts and materials are recycled and reused at the end of their life cycle. This dedication to circularity is central to Ford’s strategy to achieve carbon neutrality by 2050, demonstrating the thorough integration of circular economy practices into its operations.

• Sustainability Goals and Technological Innovation

Ford has established ambitious sustainability goals, including the commitment to use only recycled or renewable content in vehicle plastics by 2025. The company has further invested in developing a closed-loop recycling system, specifically for high-strength aluminum, recovering up to 20 million pounds per month. These efforts are bolstered by a comprehensive research and development strategy focused on enhancing battery durability and recyclability alongside developing innovative technologies for future EV models.

• Collaboration and Supply Chain Responsibility

Ford recognizes that transitioning to a circular economy requires close collaboration with suppliers. The company has launched the Manufacture 2030 program, inviting suppliers to establish science-based targets for reducing carbon emissions, water usage, and waste. Ford has also implemented due diligence audits for cobalt, nickel, and lithium used in its batteries, ensuring transparency and traceability of raw materials and committing to responsible sourcing practices.

• Analysis of Key CE and LCA Practices

Ford’s circular economy and battery life cycle management initiatives demonstrate a clear commitment to sustainability. By focusing on recycling, life cycle management, and continuous innovation, Ford is paving the way for a future of sustainable and low-carbon mobility. The company regards end-of-life vehicle batteries as a critical component of its supply chain and is dedicated to increasing battery recycling over time.

To advance these efforts, Ford is supporting several battery recycling companies. In Europe, upcoming regulations require manufacturers to report on their extended producer responsibility for proper battery recycling. Ahead of enforcing the European battery regulation, Ford has already partnered with Everledger to design a digital passport for its batteries, ensuring full traceability and alignment with future compliance requirements.

Table 17. Description of Renault.

Description	Data
Foundation	1899
Ownership	Renault S.A. is a publicly traded company listed on the Euronext Paris stock exchange under the ticker RNO. Major shareholders include the French government, Nissan, and Daimler AG [58].
Market value	Approximately EUR 13 billion (August 2024) [59].
Headquarters	Boulogne-Billancourt, France.
Factories	38 factories in 15 countries.
Annual revenue	2022: EUR 46.2 billion [59]. 2023: EUR 50 billion [59].
Market share	Approximately 4% of the global electric vehicle market (2023) [24].
Vehicle sales volume	2022 Electric vehicles: 170,000 units. Hybrids: 300,000 units. Internal combustion engine: 2.1 million units [59]. 2023 Electric vehicles: 200,000 units. Hybrids: 320,000 units. Internal combustion engine: 2.05 million units [59].
Number of employees	Approximately 111,000 (2023) [60].

Source: Prepared based on public data, company disclosures, and data obtained through research in third-party reports.

shows Renault’s description.

Table 18. Key practices identified for CE and LCA in batteries.

No.	Description
1	Circular economy and battery recycling
2	Battery life cycle management
3	Innovation and sustainability

Source: Prepared by the authors based on the sustainability report published by the company [15].

shows the main practices adopted by Renault in the context of the CE and LCA of batteries. The Renault Group’s 2023–2024 Integrated Sustainability Report presents a clear commitment to the circular economy and the sustainable life cycle management of EV batteries. Below are the key highlights of these initiatives.

• Circular Economy and Material Recycling

Renault has concentrated on minimizing environmental impact and alleviating pressure on natural resources while enhancing its strategic autonomy in material supply. The company embraces a circular approach, encompassing the reuse, repair, and reconditioning of spare parts and the recycling of materials and batteries. A prime example is the Refactory in Flins, the first facility in Europe dedicated to circular mobility. Renault has been pioneering an industrial model that generates value across the entire vehicle life cycle.

• Battery Life cycle Management

In the realm of battery life cycle management, Renault has undertaken significant steps to foster a more sustainable supply chain for battery production. A strategic alliance with the French group Arverne has been established to set up a low-carbon lithium supply chain, augmenting previous partnerships for nickel and cobalt supplies. Furthermore, Renault is propelling large-scale industrial applications to repair and reuse EV batteries, aiding the expanding of the hydrogen mobility ecosystem.

• Innovation and Sustainability

Innovation stands as a fundamental pillar in Renault’s sustainability strategy. The company is at the forefront of vehicle electrification, with the Scenic E-Tech 100% electric exemplifying how Renault merges electric vehicle technology with sustainable design principles. In addition, Renault is dedicated to reducing the carbon footprint of its operations, aiming for carbon neutrality at its electricity sites by 2025 through the use of renewable energy sources and investment in carbon offsets.

• Analysis of Key CE and LCA Practices

Renault’s initiatives, as detailed in its 2023–2024 Integrated Sustainability Report, underscore a strong commitment to the circular economy and sustainable life cycle management of EV batteries. The company employs innovative and sustainable strategies to lessen its environmental impact, encourage low-carbon mobility, and enhance resource efficiency. These endeavors firmly establish Renault as a frontrunner in the transition towards sustainable mobility.

Table 19. Description of Stellantis.

Description	Data
Foundation	2021
Ownership	Stellantis N.V. is a publicly traded company listed on Euronext Paris, the New York Stock Exchange, and the Italian Stock Exchange under the ticker STLA. Major shareholders include Exor N.V., Bpifrance, and Dongfeng Motor Corporation [61].
Market value	Approximately EUR 55 billion [62].
Headquarters	Amsterdam, The Netherlands
Factories	102 factories across 30 countries [63].
Annual revenue	2022: EUR 179.6 billion [62]. 2023: EUR 185 billion [62].
Market share	Approximately 5% of the global electric vehicle market (2023) [24].
Vehicle sales volume	2022 Electric vehicles: 300,000 units. Hybrids: 450,000 units. Internal combustion engine: 5.9 million units [62]. 2023 Electric vehicles: 400,000 units. Hybrids: 470,000 units. Internal combustion engine: 5.8 million units [62].
Number of employees	Approximately 280,000 (2023) [63].

Source: Prepared based on public data, company disclosures, and data obtained through research in third-party reports.

shows Stellantis’s description.

Table 20. Key practices identified for CE and LCA in batteries.

No.	Description
1	Reducing carbon footprint
2	Recycling and reusing materials
3	Strategic partnerships and technological evelopment
4	End-of-life management and design for circularity

Source: Prepared by the authors based on the sustainability report published by the company [19].

shows the main practices adopted by Stellantis in the context of the CE and LCA of batteries. Stellantis, one of the largest automobile manufacturers in the world, has demonstrated a significant commitment to sustainability, particularly in the areas of the circular economy and the life cycle management of EV batteries. In its 2023 Corporate Social Responsibility Report, the company outlines a series of strategies and initiatives to integrate circular economy principles into its value chain, from production to battery disposal and recycling.

• Reducing Carbon Footprint

Stellantis has set ambitious targets to reduce its carbon footprint, aiming to achieve carbon neutrality by 2038. An intermediate goal has been established for 2030, with the target of reaching a 50% reduction in carbon emissions compared to 2021 levels. These actions include focused efforts to minimize CO₂ emissions associated with the manufacturing and use of EV batteries, underscoring the company’s commitment to reducing environmental impacts throughout the product life cycle.

• Recycling and Reusing Materials

The circular economy is a central element of Stellantis’ strategy, exemplified by the industrialization of sustainable material recovery and reuse. The launch of circular economy hubs, such as the first Circular Economy Hub inaugurated in Italy, demonstrates the company’s commitment to the reconditioning and recycling of high-voltage batteries and other vehicle components. These initiatives are essential for promoting sustainable practices and maximizing the lifespan of materials, significantly contributing to the advancement of the circular economy.

• Strategic Partnerships and Technological Development

Stellantis has forged strategic partnerships to secure a sustainable supply of essential raw materials, such as nickel and lithium, critical for battery production. Additionally, the company is exploring advanced battery technologies, including solid-state and lithium–sulfur batteries. These innovations can potentially improve energy efficiency and reduce environmental impact, positioning Stellantis at the forefront of battery technology.

• End-of-Life Management and Design for Circularity

Designing products with a focus on ease of disassembly and recycling at the end of their life cycle is another essential aspect of Stellantis’ approach. In 2022, the company reported a recycling rate of 69.3% for lithium-ion batteries and 83.8% for nickel–metal hydride batteries. These practices extend the lifespan of materials and minimize the need for new resource extraction, reinforcing sustainability across the entire product life cycle.

• Analysis of Key CE and LCA Practices

The initiatives outlined in Stellantis’ 2023 Corporate Social Responsibility Report emphasize the company’s commitment to spearheading the transition towards a circular economy within the automotive sector. Through the integration of sustainable design, recycling practices, and strategic partnerships into its business strategy, Stellantis showcases a proactive and innovative approach to tackling contemporary environmental challenges. These efforts position the company as a pivotal player in endorsing sustainable practices and reducing the environmental impact of the automotive industry.

Table 21. Description of Toyota.

Description	Data
Foundation	1937
Ownership	Toyota Motor Corporation is a publicly traded company listed on the Tokyo Stock Exchange and the New York Stock Exchange under the ticker symbol TM. Major shareholders include Vanguard Group, BlackRock, and Toyota Industries Corporation [64].
Market value	Approximately USD 240 billion [65].
Headquarters	Toyota City, Aichi, Japan.
Factories	67 factories in 28 countries [66].
Annual revenue	2022: JPY 31.3 trillion (approximately USD 240 billion) [65]. 2023: JPY 33 trillion (approximately USD 250 billion) [65].
Market share	Approximately 9% of the global electric vehicle market (2023) [3].
Vehicle sales volume	2022 Electric vehicles: 400,000 units. Hybrids: 2.8 million units. Internal combustion engine: 7.6 million units [65]. 2023 Electric vehicles: 500,000 units. Hybrids: 2.9 million units. Internal combustion engine: 7.5 million units [65].
Number of employees	Approximately 370,000 (2023) [66].

Source: Prepared based on public data, company disclosures, and data obtained through research in third-party reports.

shows Toyota’s description.

Environmental sustainability and the circular economy have emerged as essential pillars in managing global supply chains, particularly in the automotive industry. In this context, Toyota Motor Corporation has implemented a series of initiatives to transition to a circular economy and mitigate the environmental impacts associated with the life cycle of EV batteries (

Table 22. Key practices identified for CE and LCA in batteries.

No.	Description
1	Circular economy in battery management
2	Goals and strategies for 2030
3	Implementation and strategic partnerships

Source: Prepared by the authors based on the sustainability report published by the company [67].

).

• Circular Economy in Battery Management

Toyota is developing a circular ecosystem focused on the batteries used in its electrified vehicles as part of a broader effort to minimize waste and maximize material reuse. Since 2010, the company has operated a robust recycling program in the United States, which has collected, recycled, or remanufactured over 186,000 hybrid vehicle batteries. This effort reflects Toyota’s ongoing commitment to sustainability and the circular economy, aimed at extending the life cycle of materials and reducing reliance on new resources.

• Goals and Strategies for 2030

Toyota has established ambitious goals as part of its global sustainability strategy, including creating global battery collection and recycling systems by 2030. This objective is integral to the “Toyota Environmental Challenge 2050,” which seeks to achieve carbon neutrality throughout the life cycle of its vehicles by 2050. Toyota’s approach encompasses reducing the environmental impacts of its manufacturing operations, promoting the recycling and remanufacturing of components, and developing technologies that support the transition to a low-carbon economy.

• Implementation and Strategic Partnerships

To achieve its goals, Toyota has established strategic partnerships to facilitate the creation of a closed-loop system for batteries. For instance, a closed-loop recycling program will support its battery manufacturing plant in North Carolina, ensuring efficient battery collection, testing, and recycling. Additionally, Toyota has encouraged its suppliers to adopt sustainable practices, such as reducing CO₂ emissions by 14% by 2026, reflecting the importance of an integrated and environmentally responsible supply chain.

• Analysis of Key CE and LCA Practices

Toyota’s approach to the circular economy and battery life cycle exemplifies a well-grounded strategy that aims to mitigate environmental impacts and create positive value for society and the planet. By aligning its practices with circular economy principles and setting long-term goals, Toyota demonstrates its commitment to environmental sustainability and technological innovation. These initiatives position Toyota as a leader in promoting sustainable mobility and responsible resource management.

6. Key Practices Adopted by Companies

The figures below highlight key elements of sustainability strategies adopted in the automotive sector. Figure 3 introduces a comprehensive framework, while Figure 4 focuses on circular economy strategies, and Figure 5 explores life cycle assessment strategies. The framework outlines 14 sustainability strategies for EV batteries within the context of circular economy and life cycle approaches. These strategies drive electrification, enhance business performance, and reinforce companies’ commitment to the 2030 Agenda.

The framework presents an integrated view of circular economy strategies and synthesizes the systemic approach required to integrate circular economy and life cycle practices within the automotive sector. It aims to transition companies from a linear mentality to a more resilient and sustainable model, wherein the value of resources is maximized throughout the life cycle of batteries.

The framework presented in Figure 3 was developed based on a systematic literature review and an analysis of sustainability reports from major electric vehicle manufacturers. Relevant academic articles and technical documents [27,32,68,69,70,71,72] were selected, which describe EC practices applied to the automotive sector, with a focus on battery life cycle management. From these studies, we identified seven key pillars guiding the industry’s transition to a circular economy model. These pillars were defined based on criteria such as recurrence in the literature, environmental impact, and regulatory relevance. The framework is structured to synthesize these practices into a cohesive structure, demonstrating how they are implemented throughout the battery life cycle, from raw material extraction to disposal or reuse. Thus, Figure 3 not only illustrates the observed trends but also provides a conceptual basis for the critical analysis of the strategies adopted by manufacturers.

The framework presented in Figure 4 was developed through a systematic analysis of the academic literature and industry reports focused on LCA practices in the electric vehicle sector. Key publications [29,30,31,68,69,73,74] were selected based on their contributions to the understanding of LCA methodologies, environmental impact assessments, and best practices in battery sustainability. The framework was structured by identifying and categorizing critical stages in the battery life cycle, including raw material extraction, production, usage, second-life applications, and end-of-life management. Each stage was analyzed concerning its environmental impact and potential for circular economy integration. The classification of these elements was informed by the recurring themes in the literature and the strategies adopted by leading EV manufacturers. Therefore, Figure 5 serves as a synthesized representation of LCA strategies, providing a structured approach to evaluating the environmental implications of battery technologies and their role in achieving sustainability objectives.

The integration of circular economy and life cycle assessment strategies highlights a joint effort by automotive companies to turn environmental challenges into innovation opportunities. The practices highlighted in the figures demonstrate that the sector is not only responding to increasing regulations but also leading initiatives that shape a more sustainable future. This holistic approach demonstrates how companies can balance economic and environmental goals, promoting global competitiveness and minimizing ecological impacts.

7. Conclusions

The analysis of life cycle and circular economy strategies adopted by major electric vehicle manufacturers revealed an increasing commitment to sustainability, driven by stringent regulations such as the European battery regulation. Leading companies, including Tesla, BYD, Volkswagen, and others, demonstrate that integrating circular economy practices and LCA of batteries is not only a response to regulatory pressures but also an opportunity to innovate and boost global market competitiveness.

Despite significant progress, challenges remain. Efficient battery recycling, reducing the carbon footprint across the value chain, and implementing traceability systems face technological, economic, and logistical barriers. Furthermore, variability in practices across regions and the need for collaboration among governments, companies, and civil society necessitate continuous attention.

The transition to a circular economy in the automotive sector is a complex but essential process for mitigating environmental impacts and promoting sustainable mobility. The future of this sector will hinge on companies’ abilities not only to comply with regulatory requirements but to surpass them by innovating solutions that facilitate the large-scale reuse, recycling, and remanufacturing of batteries.

This study sheds light on the strategies adopted by some of the world’s largest automakers, showcasing both achievements and areas in need of greater focus. As the sector evolves, ensuring that sustainability efforts are underpinned by a holistic vision that embraces environmental, social, and economic factors is paramount, ensuring that progress is inclusive and enduring.

This work has some limitations. The first is that it focused on major electric vehicle manufacturers. Secondly, it looked at a small set of companies and did consider the many other suppliers. Moreover, this study focused on data from manufacturers. Despite these limitations, this paper provides a welcome addition to the literature, as it describes some current trends and outlines some of the future action needed.

Overall, consumer socio-environmental responsibility is intrinsically linked to the industry’s commitment to seeking new technologies that mitigate greenhouse gas effects. The movement toward electrification resonates with the imperative to adapt products to new realities imposed by government regulations. This governmental impetus has been crucial in broadening the application of these strategies, with the primary goal of safeguarding the planet from climate change due to current high emission levels.

Overall, the industry’s pivot to electrification and circular economy practices signifies a significant advancement in tackling global environmental challenges. However, sustained progress will demand ongoing innovation, collaboration, and a comprehensive approach to sustainability, ensuring that environmental protection and economic growth are aligned.

Future studies should investigate the efficiency of circular economy practices in various regulatory and cultural contexts globally. A comparative analysis of companies in emerging and developed markets could uncover specific barriers to adopting life cycle and circular economy strategies and pinpoint best practices suitable for different scenarios. This exploration could extend to evaluating the impact of novel recycling and tracking technologies on achieving regulatory objectives, such as the recent European battery regulation.

Furthermore, developing predictive models to gauge the economic and environmental impacts of incorporating circular economy principles into automotive supply chains is advisable. These models could leverage big data analytics and artificial intelligence to forecast reductions in carbon emissions and increases in component lifespan. Additionally, exploring consumer and stakeholder perceptions of the transparency of sustainability practices could provide insights into how transparency influences purchasing decisions and companies’ competitiveness in the sector.