Risk assessment in lithium-ion battery circular economy in sustainable supply chain in automotive industry using gray degree of possibility in game theory and MCDM

The Circular Economy of the Automotive Industry’s Sustainable Supply Chain in the Case of Lithium-Ion Batteries is pioneering in environmental protection and ecological resource utilization. In addition to solving environmental problems, this method provides economic benefits by reducing the need for raw materials and lowering manufacturing costs. However, introducing a circular economy approach in the lithium-ion battery supply chain has numerous risks and challenges. This study addresses these challenges by crafting a framework that encapsulates the risks involved. It identifies the risks that evolving circular economy strategies might bring to the lithium-ion battery supply chain through an integrated Gray Delphi–DEMATEL–ANP method. Furthermore, this work introduces the Gray Degree of Possibility to unveil worst-case scenarios in risk analysis and extends it into zero-sum Game Theory. The study then formulates an improved zero-sum game model to determine optimal strategies for mitigating these risks. The numerical analysis reveals that, according to the proposed methodology, Environmental Pollution Risk emerges as the most critical, with a definite weight of 0.1525. This is followed by the Support Program Deficiency Risk at 0.1452 and the Improper Waste Management Risk at 0.1372.