Research on dual-channel recycling strategy and policy recommendations of spent power battery

Purpose The purpose of this study is to research and provide dual-channel recycling strategies and policy recommendations for spent power batteries. Design/methodology/approach A supply chain of an electric vehicle manufacturer, a power battery manufacturer and two spent power battery recycling enterprises (retailer and third-party recycling platform) is established. Parameters such as price elasticity coefficient and the R&D (research and development) cost coefficient of regrouping battery are considered, profit model under three policies (no subsidy, one-time subsidy and subsidy by capacity of regrouping battery) is constructed by using the game theory. The optimal strategies under different policies are compared and analyzed. Findings It is found that the recycling quantity of spent power batteries, the unit price of energy electric, the wholesale price of regrouping batteries, the optimal R&D investment for regrouping batteries and the maximum profit with subsidies are all greater than those without subsidies, which reflects the effect of subsidies. In addition, under different thresholds, there are different effects of the one-time subsidy policy and the subsidy policy by capacity on key parameters. Social implications The principles for government to develop a reasonable recycling policy for spent power batteries are put forward. Originality/value The effect of subsidies is found. Some guidance for the government to develop recycling policies for spent power batteries and promote the sustainable development of the new energy electric vehicle industry is proposed.