The transport sector, particularly electric vehicles (EVs), plays a pivotal role in mitigating climate change. However, the use of lithium-ion (li-ion) batteries in EVs raises sustainability concerns due to their limited lifespan, high costs, potential raw material shortages, and the environmental impact of raw material mining. These concerns necessitate the incorporation of sustainable development strategies into EV innovation plans. With a booming EV market, both luxury and non-luxury brands are being urged to adopt circular economy strategies, such as battery reuse and recycling, to enhance the brand-customer relationship. While the automotive industry has begun implementing these strategies, there is limited research on how they affect customer acceptance and the impact on luxury versus non-luxury brands. This thesis examines the existence of differences and influence of these circular economy strategies on the EV industry, with a particular focus on li-ion batteries, and analyzes their impact on luxury and non-luxury automotive EV brands.

Background: Circular economy (CE) is one of the most recent ways to address environmental sustainability. It aims to extend the value of products, materials, and resources for as long as possible, and minimize waste generation by maintaining them in the economy for as long as possible to mitigate climate change, lowering greenhouse gas emissions, and resource short­ages. Businesses play a crucial part in protecting the environment and have been urged to incorpo­rate CE practices. Leadership and top management have been found crucial for the transi­tion and the CEO has the power to shape strategic plans and directions for the company. Despite the growing research on CE and what influences the transition, literature on individual roles of the top management team is scarce. Existing literature focuses on different factors driv­ing the transition but not the specific roles of the top management team. Purpose: The purpose of this research is to add to the literature regarding CE and how the CEO influences the transition. With this research, we aim to contribute to the current discussion on the transition towards CE, both theoretically and practically. Method: We have conducted a qualitative study with an inductive approach. It follows a relativist ontology and a social constructionism viewpoint. The methodology is an exploratory multi­ple-case study where the companies were selected by purposive sampling. Five companies were selected and in total 16 semi-structured interviews were conducted where we gathered data from both CEOs and their employees. The data was analyzed by combining the Goioa method with Eisenhardt’s multiple case study approach. Conclusion: Based on our findings we identified that the CEO influences the transition towards CE. We distinguished the CEO role within top management and found that they influence CE through strategic management and power. Within strategic management, the CEO influences through setting the strategy, being the decision maker, allocating resources, and setting the direc­tives and goals for the organization. The aspect of power was found to influence the inter­nal organization and external parties. Additionally, we showed how these contributions can be applied practically.