Blockchain integration for cost-effective EV battery remanufacturing in closed-loop supply chains

This study examines strategies to enhance the economic viability and environmental sustainability of lithium-ion battery (LiB) remanufacturing in electric vehicles (EVs). It evaluates centralised and decentralised closed-loop supply chain (CLSC) models, integrating blockchain technology and dynamic optimisation to improve transparency, coordination, and cost efficiency. Using Tesla’s battery collection and remanufacturing operations in China as a case study, the research employs expert interviews, legal framework analysis, and industry reports. Optimisation techniques, including Python’s PuLP and Monte Carlo simulations, identify cost-effective network configurations. Findings reveal that economies of scale and blockchain integration significantly reduce costs by over 86% for moderate volumes and 81% for large volumes. The study challenges the perception of LiB remanufacturing as unprofitable, demonstrating its commercial feasibility at scale. Strategic measures, including regional remanufacturing centres and optimised logistics, are recommended to support the circular economy and long-term sustainability in the EV industry.