Blockchain-Enabled Closed-Loop Supply Chain Optimization for Power Battery Recycling and Cascading Utilization
Abstract
:1. Introduction
- (1)
- MOR Model: This model represents a hybrid recycling collaboration between power battery manufacturers and original equipment manufacturer (OEM) vehicle manufacturers.
- (2)
- MTR Model: This model involves a hybrid recycling approach between power battery manufacturers and third-party recyclers.
- (3)
- OTR Model: In this model, the collaboration is between OEM vehicle manufacturers and third-party recyclers.
- (4)
- MOTR Model: This model encompasses a hybrid recycling approach among power battery manufacturers, OEM vehicle manufacturers, and third-party recyclers.
2. Literature Review
2.1. Battery Recycling
2.2. Blockchain Application in Supply Chain
2.3. Recycling Supply Chain
2.4. The Interrelationships Among Members in Supply Chain
2.5. Related Work Review and Analysis
3. Methods
3.1. Model Descriptions
3.2. Model Assumptions
3.3. Basic Assumption
- (1)
- The members of the closed-loop supply chain for power batteries are all completely rational, and, in the decision-making process, there is a sequence of actions between power battery manufacturers and OEM vehicle manufacturers. In the case of incomplete information symmetry, the power battery manufacturer is the leader, and the OEM vehicle manufacturer is the follower, determining their own behavior based on the leader’s behavior.
- (2)
- Referring to relevant research, the demand function for power batteries is set to , and the amount of retired batteries recovered is (d, optional m, v, t, and n). When using blockchain, it indicates that consumers are sensitive to traceability levels; when blockchain is not used, it indicates that consumers have zero sensitivity to traceability levels.
- (3)
- To optimize the recycling process of the power battery supply chain, power battery manufacturers adopt blockchain technology for management, with an investment cost of .
- (4)
- OEM vehicle manufacturers sell power batteries at retail price p, which only considers the retail price of the power battery and does not include other additional products, related spare parts costs, and labor costs.
- (5)
- For the hierarchical utilization process, this article adheres to the principle that if the battery capacity is below 80% and cannot be used for new energy vehicles, it will be recycled and used for other scenarios, with a single profit of R; for power batteries that cannot be reused, the batteries are tested and reassembled, and usable raw materials are extracted for regeneration and recycling. As the amount of regeneration and recycling cannot be determined, the total profit is set as F. Since the recycling of batteries is relatively small for OEM vehicle manufacturers and third-party recyclers, and the selling price is low, assuming it is ignored, transportation costs and other expenses are borne by the power battery manufacturer.
- (6)
- With the development of new energy vehicles, the types of batteries are becoming more diverse. To ensure research rigor, it is set that all power batteries are of the same model and capacity.
- (7)
- Using blockchain technology, the proportion of retired batteries that can be used for cascading utilization will be quickly identified through information technology.
- (8)
- In reality, it is rare to purchase power batteries separately. To ensure the reliability of the research, it is set that power batteries have independent wholesale prices, retail prices, and recycling prices, which can be independently accounted for.
3.4. Methodology
4. Results
4.1. Hybrid Recycling Mode (MOR Mode) Between Power Battery Manufacturers and OEM Vehicle Manufacturers
4.2. Hybrid Recycling Mode Between Power Battery Manufacturers and Third-Party Recyclers (MTR Mode)
4.3. Hybrid Recycling Mode (OTR Mode) Between OEM Vehicle Manufacturers and Third-Party Recyclers
4.4. Hybrid Recycling Mode (MOTR Mode) for Power Battery Manufacturers, OEM Vehicle Manufacturers, and Third-Party Recyclers
- (1)
- Using Formula (38) to calculate the first partial derivative of its decision variable, we obtain
- (2)
- Using Formula (39) to calculate the first partial derivative of its decision variable, we obtain
- (3)
- Using Formula (40) to calculate the first partial derivative of its decision variable, we obtain
- (1)
- Using Formula (38) to calculate the first partial derivative of its decision variable, we obtain
- (2)
- Using Formula (39) to calculate the first partial derivative of its decision variable, we obtain
- (3)
- Using Formula (40) to calculate the first partial derivative of its decision variable, we obtain
4.5. Summary
5. Simulation Analysis
5.1. The Impact of the Hierarchical Utilization Ratio θ on the Supply Chain
5.1.1. The Variation of Recycling Prices pm, pv, pn, and pt with the Hierarchical Utilization Ratio θ
5.1.2. The Profit of Power Battery Manufacturers Varies with the Hierarchical Utilization Ratio θ
5.1.3. The Profit of OEM Vehicle Manufacturers and Third-Party Recyclers Varies with the Hierarchical Utilization Ratio θ
5.2. The Impact of Different Recycler Competition Coefficients h on the Supply Chain
5.2.1. The Variation of Recycling Prices pm, pv, pn, and pt with h
5.2.2. The Profit of Power Battery Manufacturers Changes with h
5.2.3. The Profit Changes of OEM Vehicle Manufacturers and Third-Party Recyclers with h
6. Conclusions
7. Discussion and Policy Implication
- Improve the hierarchical utilization rate of power batteries.
- 2.
- Promote healthy competition and ensure market order.
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
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Type | Case | Battery Recyclers |
---|---|---|
MOR | CATL collaborate with Xiaomi and BAIC to complete the recycling project | Power Battery Manufacturers OEM Vehicle Manufacturers |
MTR | GEM cooperate with LGC/CATL/Samsung to promote battery recycling [1] | Power Battery Manufacturers Third-party recyclers |
OTR | BYD partnered with Shenzhen Pandpower Co., Ltd., to develop battery recycling | OEM Vehicle Manufacturers Third-party recyclers |
MOTR | Mercedes-Benz signed a contract with CATL and GEM to start a recycling project [2] | Power Battery Manufacturers OEM Vehicle Manufacturers Third-party recyclers |
References | Power Battery Recycle | Utilization | Blockchain Applications | Recycling Channel Analysis | Member Relationships |
---|---|---|---|---|---|
[4,5,6,7,8,9] | √ | × | × | × | × |
[10,11,12,13,14,15,16,17,18,19,20] | √ | √ | × | × | × |
[21,22,23,24,25] [32,33,34,35,36,37,38] | × | × | √ | × | × |
[26,27,28,29,30,31] | √ | × | √ | × | × |
[39,40,41,42,43,44] | √ | × | × | √ | × |
[45,46,47,48,49,50] | √ | × | × | √ | √ |
Our research | √ | √ | √ | √ | √ |
Parameter | Description |
---|---|
C0 | The cost of producing power batteries for power battery manufacturers |
w | Wholesale price of power batteries |
D | Demand for power batteries in the market |
a | Potential demand for power batteries in the market |
α | Consumer sensitivity to retail prices of power batteries |
β | Consumer sensitivity to the price of retired battery recycling |
δ | Cost coefficient of blockchain investment |
φ | Cost coefficient of battery recycling |
ε | Consumer sensitivity to the traceability level of power batteries |
p | Retail price of power battery |
pm | Retired power battery recycling price (power battery manufacturer → consumer) |
pv | Retired power battery recycling price (OEM vehicle manufacturer → consumer) |
pt | Retired power battery recycling price (third-party recyclers → consumers) |
pn | Retired power battery recycling price (power battery manufacturer → OEM vehicle manufacturer/third-party recycler) |
Ca | Retired power battery costs (including but not limited to dismantling, evaluation, and transportation expenses) |
Cb | Cost of blockchain investment |
e θ R | Level of investment in blockchain The proportion of retired batteries that can be recycled and reused (the hierarchical utilization ratio) Profit per unit of power battery cascading utilization |
M | Consumers voluntarily return the quantity of power batteries |
F | Total revenue from dismantling and recycling power batteries |
Profit function of i under mode j | |
h | Competition coefficient among members in the process of recycling waste batteries |
MOR Mode | MTR Mode | OTR Mode | MOTR Mode | |
---|---|---|---|---|
p | ||||
w | ||||
e | ||||
pm | ||||
pv | ||||
pn | ||||
pt | ||||
M Revenue | ||||
O Revenue | ||||
T Revenue |
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Yu, H.; Wang, S. Blockchain-Enabled Closed-Loop Supply Chain Optimization for Power Battery Recycling and Cascading Utilization. Sustainability 2025, 17, 4192. https://doi.org/10.3390/su17094192
Yu H, Wang S. Blockchain-Enabled Closed-Loop Supply Chain Optimization for Power Battery Recycling and Cascading Utilization. Sustainability. 2025; 17(9):4192. https://doi.org/10.3390/su17094192
Chicago/Turabian StyleYu, Haiyun, and Shuo Wang. 2025. "Blockchain-Enabled Closed-Loop Supply Chain Optimization for Power Battery Recycling and Cascading Utilization" Sustainability 17, no. 9: 4192. https://doi.org/10.3390/su17094192
APA StyleYu, H., & Wang, S. (2025). Blockchain-Enabled Closed-Loop Supply Chain Optimization for Power Battery Recycling and Cascading Utilization. Sustainability, 17(9), 4192. https://doi.org/10.3390/su17094192