The optimization of an EV decommissioned battery recycling network: A third-party approach

In this paper, we solve the urgent problem to construct a recycling network of decommissioned batteries of Electric Vehicles (EVs) and clarify the recycling entities that will be responsible for its reverse logistics (RL) process. We consider the third-party recycling entities to develop a recycling network and conduct a case-study of Xi'an, a key industry of EVs in China to provide a reference for the government and enterprises to develop recycling plans. We scientifically optimize our recycling network, which will have a significant impact on the environmental and economic benefits of electric vehicles (EVs) in Xi'an in the future. Specifically, we consider the costs of transportation, construction, operation, recycling, packaging, and emission, as well as the profits achieved through sales revenue and subsidy offerings. We collect the actual data of potential facility locations in Xi'an, predict the quantity of decommissioned batteries in the future, and develop a fuzzy-based model to solve the optimal results of battery traveling path and distribution in the recycling process network. Our results show that with the rapid growth of the number of decommissioned batteries, third-party revenues will reach about 53.08 billion by 2035. When the facilities split the recycling process load appropriately, the network has increase in revenue while the utilization rate of facilities will decrease. We expect that splitting will be a major trend in the future development of recycling network in Xi'an. Finally, a sensitivity analysis finds that with the environmentally conscious and safe operation of recycling, the negative impact on the third-party enterprises' revenue will be small. Our proposed methodology can serve as a critical framework for other cities and governments to plan their recycling networks and formulate regulations, reflecting on the realistic projection of the scale of decommissioned batteries of EVs and the potential siting and sizing of the recycling facilities.