Optimal Recovery Mode for New Energy Vehicle Battery Recycling Under Government Policies

ABSTRACT The choice of spent new energy vehicle (NEV) battery recovery mode is crucial to improve recovery performance. This paper examines the decision‐making rules for the closed‐loop supply chain of NEV batteries under the intervention of government policies. It also compares the performance of the supply chain across various recovery modes and the effects of different policies. Results indicate that (1) in terms of total revenue and recovery rate, the battery producer recovery mode, mixed recovery mode involving automobile manufacturer and professional recycler, is more effective. (2) The optimal solution for the decision variable is influenced by government policies, and this influence remains consistent across different recovery modes. (3) The positive impact of the deposit‐return system is linked to the relationship between the deposit amount and the reward scale. If the refund constitutes too small a proportion of the deposit, both total revenue and recovery rate will decline. Reducing recycling channel costs and enhancing purchasers' environmental awareness can increase the battery recycling ratio and higher total revenue.