The global EV stock is expected to increase from 7.2 million in 2019 to nearly 140 million vehicles by 2030. So, the demand for the battery also increases due to the increase in the number of EVs. In any EV, battery degradation is an unavoidable phenomenon and EV batteries are assumed to arrive at their end-of-life in EV application when the state of health reaches 80 %, repurposing the eligible EV batteries after end of first life is expected to extend their lifetime by another 5-15 years in the second life applications.  This thesis aims to conduct a techno-economic study on the usage of second life EV batteries as an alternative storage option in off-grid PV systems compared to lead-acid batteries and new Li-ion batteries. A single-family house with an annual demand of 2245 kWh/year located in Athens was chosen as the primary location, the off-grid PV system is pre-sized for Athens and based on the pre-sizing results and what is state of art in the market. The system components were chosen for system design (4 kW bi-directional inverter, 2.9 kW PV array, 7.2 kW genset and three battery bank options i.e., 16.5 kWh of lead-acid, 8 kWh new Li-ion and 12.6 kWh of second life EV battery). PV off-grid system with different storage options is simulated using HOMER for both locations and the results are compared.   The simulation results show that the designed off-grid PV system can reach a solar fraction of 90 % in Athens and 73 % in Gotland when 16.5 kWh of lead-acid batteries are used with an allowed depth of discharge of 50 %. When a new Li-ion battery of 8 kWh with an allowed depth of discharge of 80 % is used then the achievable solar fraction is 84 % in Athens and 71 % in Gotland, When the second life EV battery of 12.6 kWh with an allowed depth of discharge of 60 % is used then the achievable solar fraction is 90 % in Athens and 74 % in Gotland. Sensitivity analysis is performed on the depth of discharge and results showed that the solar fraction can be increased by allowing the battery to discharge more, but it also decreases the battery lifetime.   The simulation results also show that the net present cost was lower in Athens for all the reference cases compared to Gotland. Net present cost and levelized cost of electricity for the off-grid system are 25.3 k€, 0.9 €/kWh in Athens and 29.2 k€, 1.0 €/kWh in Gotland when a lead-acid battery is used. When a new Li-ion battery is used then 26.2 k€, 0.9 €/kWh in Athens and 29.3 k€, 1.0 €/kWh in Gotland, when the second life EV battery is used then 26.7 k€, 0.9 €/kWh in Athens and 30.7 k€, 1.1 €/kWh in Gotland.   Overall, the net present cost and levelized cost of electricity are lower in Athens in all cases compared to Gotland. For the reference house in Athens, lead acid battery system has shown slightly lower net present cost than new Li-ion battery and second life EV battery. For the reference house in Gotland, both lead acid battery and new Li-ion battery system have shown similar net present cost and they are slightly lower than second life EV battery.   Also, the second life EV battery levelized cost of electricity is fairly comparable to the new Li-ion and lead acid battery system. In future, the massive inflow of used batteries from EV are expected to be available on the market for the second life application at a lower price than today. Thus, in future, second life EV batteries can become economically viable.

Denna kandidatuppsats undersöker livscykeln för återvunnen litium i elbilsbatterier, med fokus på återvinningsprocessen och dess miljöpåverkan vid olika stadier i dess livscykel. Målet är att få insikt i miljöeffekterna från främst litium, men också andra värdefulla material i elbilsbatterier, samt hur deras utvinning, användning och återvinning påverkas av politiska riktlinjer och regler. Olika tekniker för återvinning av batterimaterial undersöks, såsom pyrometallurgi, hydrometallurgi och direktåtervinning. Dessa jämförs sedan med avseende på miljökonsekvenser, effektivitet och säkerhet. Påverkan av politik och regleringar på batteriåtervinning analyseras, mer specifikt de riktlinjer som ges av Europeiska unionen inom ramen för Green Deal. Resultatet från vår litteraturstudie bekräftades av en intervju med en representant från Northvolt. Litteraturstudierna har bidragit med mycket information då det finns omfattande forskning inom området, men då många av dessa artiklar har liknande perspektiv fanns det brist på mer nyanserade studier. Intervjun med Northvolt gav också värdefulla insikter i hur företag arbetar med att minska miljöpåverkan. Sammanfattnings visar studien på att de vanligaste återvinningsmetoderna medför både positiva och negativa konsekvenser på återvunnet litiums livscykel. Den har också visat på att det finns politiska direktiv som har fått företag att prioritera sitt hållbarhetsfokus. Följaktligen har företag som redan integrerat hållbarhet som grundvärdering en fördel gentemot de konkurrenter som istället behöver anpassa sig till nya riktlinjer och policys. / This bachelor's thesis explores the lifecycle of recycled lithium in electric vehicle (EV) batteries, with a focus on lithium recycling and its environmental impact at different stages of recycled lithium's lifecycle. The objective is to gain insight into the environmental effects of primarily lithium but also other valuable materials in EV batteries as well as how their extraction, usage and recycling is influenced by political guidelines and regulations. The extraction process of lithium is examined, along with its impact. Additionally, various techniques for battery material recycling are investigated, such as pyrometallurgy, hydrometallurgy and direct recycling. These are then compared with each other in terms of environmental consequences, efficiency, and safety. The impact of policies and regulations on battery recycling is analyzed, specifically the guidelines provided by the European Union in the Green Deal. The literature review work was reinforced by an interview with a representative from Northvolt. These reviews have been beneficial due to the extensive research in the field, although a limitation is the lack of diverse perspectives in the articles. The interview with Northvolt provided insights into how companies are working to reduce environmental impact. In conclusion, this thesis shows that the most commonly used extraction methods of lithium have both positive and negative consequences on the life cycle of recycled lithium. Furthermore, findings of this thesis shows that there are political directives which have prompted companies to prioritize their sustainability focus. Consequently, companies that have already integrated sustainability as a core value have a competitive advantage over their counterparts who need to adjust to new guidelines and policies.

Date:    2nd June 2024 Level:    Master Thesis in Product- and Process Development, Advanced     level, 30 credits                                                                                  Institution:   School of Innovation, Design and Engineering, Mälardalens University Authors:   Farin Hasan & Soumik Karim Title:    Role of digitalization and digital capabilities to implement second-life business models for electric vehicle batteries Keywords:   Second-life EV batteries, Digitalization in circular economy, Industry 4.0 technologies, EV battery life cycle, Circular economy models, Battery recycling/repurposing Purpose:   The aim of this thesis study is to develop and evaluate a digitalization framework with the goal of improving the second life management of EV batteries.  Research questions:  “What type of Industry 4.0 technologies and digital capabilities are key for the implementation of second-life business models for EV batteries and how do they support ecosystem actors?”  , “How should ecosystem actors prepare and integrate these     technologies and capabilities to implement second-life business models for EV batteries? Methodology:   The study was conducted using an abductive research approach,   employing qualitative methods. The theoretical framework was developed through a systematic literature review of existing literature within the research scope. Data collection involved an  extensive literature review and archival study. Thematic analysis was applied to the data to identify patterns and themes, which were further analyzed to construct a framework.                                                     Conclusion:   The study concludes that integrating industry 4.0 technologies enhances the management and repurposing of EV batteries for second-life applications. These technologies enable effective monitoring, predictive maintenance, and secure data management, which supports ecosystem actors in developing sustainable and economically viable second-life business models.

Sustainability has become a critical issue due to global warming, scarcity of resources, and the high costs of raw materials. It is vital to reconsider linear business models and value creation processes and transition towards circularity. The growth of the electric vehicles market is promising; however, it comes with a major downside. Soon there will be a considerable number of used batteries without the original capacity and potentially hazardous that cannot go to landfill due to environmental and economic reasons. In this regard, the use of electric vehicle batteries in second life (EVBSL) is suggested as a solution. EVBSL comes with benefits such as the extension of the battery life cycle, extracting value from the remaining capacity of the battery, reduction in the upfront costs of the electric vehicle, and create new revenue streams for the companies. And since various actors are involved in EVBSL, it is essential to study this phenomenon from an ecosystem perspective. Despite the recent focus of researchers on EVBSL, there are several gaps in the current literature on this topic. The first gap concerns the challenges and enablers of implementing circular business models (CBMs) for EVBSL. The second gap concerns the second life operations of electric vehicles (EV). There is a lack of research on the solutions that can guide the ecosystem actors to manage EVBSL-related activities. And the third gap concerns the limited research on the preconditions of circular business model innovation for the EVBSL that focuses on the transition from linear business models to CBMs. Therefore, this thesis aims to develop knowledge of the factors that influence the implementation of CBMs for EVBSL from an ecosystem perspective. This study intends to address these gaps by conducting qualitative research. An exploratory research design has been deemed adequate due to its flexibility and compatibility. This research draws on the existing literature on the second life of EV batteries, and circular business models. In total, 20 interviews and 15 workshops have been conducted covering 15 companies in the EVBSL ecosystem. Purposeful sampling was employed to select the EVBSL ecosystem actors with the aim of covering the key actors such as OEMs, battery manufacturer, recycling companies, remanufacturers, energy utility companies, material supplier for battery parts, construction and housing company, and public transportation companies. The collected data was analyzed via qualitative methods such as thematic analysis.  The results of this study have led to the identification of nine key challenges and seven key enablers. Moreover, two dimensions (i.e., time frame and responsible entity) are identified from the empirical data, through which companies can structurally categorize and work with the identified key challenges and enablers. Based on this, a guiding framework is suggested that could support firms in the EV battery ecosystem to establish and manage various configurations for second-life operations in a series of phases such as firm-level initiation, ecosystem construction, firm-level optimization, and ecosystem orchestration. Finally, the current linear business models (traditional sales of products and services, product maintenance and support, R&D, consultancy, and services), upcoming CBMs (regenerating, looping, and sharing), and the preconditions (for value creation, capture, and delivery) for the circular business model innovation are extracted.  This study contributes to the existing body of knowledge in several ways. It enhances the current literature on challenges and enablers of EVBSL by covering various actors in this ecosystem and extends the knowledge on the scope of these factors. Moreover, this study is the first one that suggests a guiding framework for the ecosystem actors through configurations for second-life operations while shedding light on the preconditions of circular business innovation for EVBSL. This study also provides interesting insights for practitioners and managers in the EVBSL ecosystem. / RECREATE project