Project Name: Impact Benchmarking Analysis on Electric Vehicle’s Sustainability
Project Time: 2023 Fall
With the increasing global focus on sustainable development, electric vehicles have received widespread attention as one of the key technologies for mitigating climate change and reducing dependence on finite resources. However, with the rapid development of battery technology, the issue of battery recycling has become a new challenge. Against this backdrop, industry leaders such as Tesla, Ningde Times and BYD have developed comprehensive battery recycling programs to address the growing problem of recycling battery waste. In addition to the closed-loop recycling programs of large companies, startups in Europe and the United States are recycling some retired kinetic batteries into energy storage systems and proposing creative solutions. Different types of companies use their own solutions to address some of the industry’s pain points and are committed to the circular economy, answering the question of whether EV battery recycling is sustainable.
Yuli Lu (Duke Kunshan University), 2026
Louis Liu (Duke Kunshan University), 2026
Jincheng Yang (Duke Kunshan University), 2026
Yuelin Hou (Duke Kunshan University), 2027
Are EV vehicles really sustainable in terms of environmental, social, and economic impacts? Compared with fuel vehicles, how much carbon emission can EV vehicles really reduce throughout the life cycle, and how much carbon emission can be further eliminated through EV battery recycling and reuse? What would be the impacts on the labor force along the value chain?
The student group investigated the relevant industry reports, case studies, and databases, challenged and questioned the controversial views, distilled the most convincing views and data, and then concluded the group’s view based on the impact benchmarking analysis.
Tesla
Tesla not only meets the market demand for environmentally friendly and advanced technologies, but also realizes profitability through the sale of electric vehicles.
- 100% battery recycling program: complete battery recycling process, set recycling standards, improve recycling efficiency.
- Superfactories – factories with sustainable manufacturing and recycling processes.
CATL宁德时代
A Chinese company that mainly serves new energy vehicle manufacturers worldwide. The most competitive battery recycling industry chain in the world: establishing battery recycling system, improving recycling efficiency, seeking partnership programs.
- Closed-loop battery recycling model –“separation of vehicle and electricity”, “dismantling of parts”, “material categorization “.
- Utilize data intelligence technology to manage battery decommissioning and production, and solve the problems of mixed products and immature technology in traditional recycling.
BYD
BYD realizes profitability through the sale of diversified products such as electric vehicles, batteries, new energy solutions, and traditional fuel vehicles.
- Recycling program for lithium batteries Terraced utilization – for the decline of the battery can not make the normal operation of electric vehicles.
- Dismantling and recycling – resourceful treatment of batteries, recycling and reuse of renewable energy resources.
- Sound process system and high recycling efficiency.
B2U
The US-based company B2U responds to industry pain points through technological innovation EV Pack Storage: B2U’s utilization technology for retired battery storage, referred to as EV Pack Storage (EPS technology), stands out because it allows retired power batteries to be used for large-scale energy storage without modification.
Connected Energy
Connected Energy is a UK-based company founded with the intent to creatively address energy, transportation, and environmental issues while supporting the circular economy. It aims to help the world embrace sustainable energy solutions by utilizing the potential value in used electric vehicle batteries. Connected Energy specializes in smart grid solutions for electric companies, supporting advanced distribution automation from substations to the end user. These solutions enhance the efficiency, reliability, and environmental performance of the power grid. The company combines its experience in smart grid applications with marketleading technology to serve major electricity companies.
Moment Energy
A clean technology company that offers energy storage systems, specializing in repurposing retired electric vehicle (EV) batteries. Customer Base and Market Positioning: primarily serves the energy storage needs of remote areas, while expanding into commercial and industrial applications. Focuses on developing an optimized Battery Management System (BMS) for second-hand battery performance.
Redwood Materials
An American company specializing in the recycling of lithium-ion batteries and the production of battery materials for electric mobility and power storage systems. Its goal is to create a closed-loop supply chain for electric vehicles and clean energy products, focusing on developing a complete circular process around lithium-ion batteries. This includes recycling batteries, extracting valuable materials such as nickel, cobalt, lithium, and copper for the manufacture of new batteries. This system not only recycles discarded batteries but also extracts and reuses important metal materials, achieving a recycling efficiency of up to 95%.
Issue
There are challenges in the conversion of power batteries and energy storage batteries into the energy storage system. The differences between the two, with energy storage battery modules being larger in scale and having multiple series of batteries. From an economic efficiency perspective, energy storage stations require a thorough balance of power batteries. Different types of batteries may use completely incompatible communication protocols, creating ecological conflicts when connecting power batteries into energy storage systems.
Solution
The solution for the startup company is to focus on technological innovation or establish direct collaborations with large corporations to convert retired kinetic energy batteries into energy storage batteries. The startup is capable of recycling retired kinetic energy batteries that cannot be recycled internally by some large corporations.
Common grounds
- Implementing a battery recycling program to achieve sustainable battery recycling
- Focus on sustainability
Various emphases
Technology innovation level:
- Tesla: system level
- Ningde Timesz: pays attention to the improvement of the whole process of recycling
- BYD: echelon utilization, the establishment of a sound waste battery dismantling process cycle industry chain
Solution dimension:
- Tesla offers a comprehensive 100% battery recycling solution, enhancing its attractiveness in sustainability investments through a vertical integration strategy
- Ningde Times adopts industrial chain integration, seeks extensive cooperation reduce risks in the development of recycling industrial chain
- BYD focuses on specialization in recycling, but also brings limitations and risks of market diversity
Startup Company Advantage
Since these waste electric vehicle batteries can still retain 80% of their original capacity, they overall represent a huge storage resource. Startups provide traditional large companies with new business models to enter the new energy track. From the perspective of circular business, it is crucial to introduce new business models such as giving electric vehicle batteries a second life. By using batteries in energy storage applications outside of automobiles, new sources of revenue and cost savings can be achieved, while also extending the battery’s lifespan.
To view more related outcomes, please click on the link. (Viewable only by DKU community)
Born as China’s first impact measurement boutique, Impact Bread engages in the next wave of tech innovations toward carbon neutrality. Its specialized sectors span across the circular economy, energy innovations, smart agriculture, food tech, ocean health, and sustainable mobility.
Impact Bread has developed the world’s first SDG talent pool since 2020. Based on this talent pool, it has served renowned impact funds, family offices, foundations, tech startups, and sustainability consulting firms in Singapore, Hong Kong, and Mainland China, and successfully fulfilled > 75% of all posted positions.
In 2021, Impact Bread took world-class impact investment best-practice and know-how from the past 10 years and then distilled them into an impact investing training series. This series has empowered impact leaders from Harvard, Stanford, Connell, MIT, Georgia Tech, Berkley, NYU, Johns Hopkins, Columbia, etc.
Impact Bread has become a harbor for future leaders to seek their life purpose and unleash their potential. Over 300 pro bono counseling hours have been offered to young talents since the start of the COVID-19 pandemic to date.