Evolutionary Game Analysis of Power Battery Recycling in the Context of a Carbon Cap and Patent Licensing

A wave of large-scale retirement of power batteries is gradually approaching, and the patent licensing conditions for remanufacturing retired power batteries present opportunities for third-party recycling manufacturers to emerge. Considering both the carbon-emission benefits of power battery recycling and the intellectual property disputes, this paper establishes an evolutionary game model with third-party recyclers and battery manufacturers as players. It examines the costs and utilities of stakeholders involved in the reverse logistics process of power battery recycling under carbon quotas, accounting for patent licensing, and analyzes key parameters and participant strategy choices. The research indicates: (1) when the volume of waste power batteries is significant, third-party recycling manufacturers tend to choose direct battery disassembly; (2) at higher carbon prices within the carbon market, third-party recycling manufacturers are more likely to adopt remanufacturing strategies; (3) lower patent licensing fees combined with higher patent maintenance costs help battery manufacturers secure greater profits and encourage third-party recycling manufacturers to engage in battery remanufacturing activities.