Evaluation of Circular Pathways for Heavy‐Duty Vehicle Batteries in Europe Using a Multi‐Method Simulation Approach

ABSTRACT Circular battery strategies have become of major interest focusing on material availability while increasing economic and environmental benefits. In this context of circular economy, one main challenge for automotive original equipment manufacturers is that the most profitable handling strategy along the lifecycle is unknown. Although batteries can be repaired, reused in the vehicle, repurposed as energy storage systems or recycled, the timing of when to apply what handling strategy depends on battery degradation, market demand and material value embedded in batteries. This study explores how to apply optimum handling strategies for heavy‐duty vehicle batteries. Using data from one European manufacturer, a hybrid agent‐based and discrete event simulation is developed. Firstly, the most cost‐efficient circular supply chain network is identified increasing the lifecycle profit margin by up to 5%. Secondly, the optimum battery life split is investigated adding another profit potential of up to 4%. The result supports decisions of operators in workshops and battery warehouses.