Designing profitable supply chains for lithium-ion battery recycling in the United States

Recycling spent lithium-ion batteries (LIBs) has attracted lots of attention recently, due to the increasing demand for critical materials contained in LIBs, putting high pressure on their geological reserves. We evaluated the potential of bioleaching technology as a sustainable solution for recycli...

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Main Authors: Majid Alipanah, Sunday Oluwadamilola Usman, Apurba Kumar Saha, Hongyue Jin
Format: Article
Language:English
Published: AIMS Press 2024-06-01
Series:Clean Technologies and Recycling
Subjects:
Online Access:https://www.aimspress.com/article/doi/10.3934/ctr.2024002
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author Majid Alipanah
Sunday Oluwadamilola Usman
Apurba Kumar Saha
Hongyue Jin
author_facet Majid Alipanah
Sunday Oluwadamilola Usman
Apurba Kumar Saha
Hongyue Jin
author_sort Majid Alipanah
collection DOAJ
description Recycling spent lithium-ion batteries (LIBs) has attracted lots of attention recently, due to the increasing demand for critical materials contained in LIBs, putting high pressure on their geological reserves. We evaluated the potential of bioleaching technology as a sustainable solution for recycling spent LIBs to help inform decision-making processes for stakeholders involved in LIB recycling supply chains. A supply chain model was developed to include required upstream processes with the objective of maximizing economic feasibility of LIB recycling through the technology. The model has been applied to the U.S. and an optimal supply chain configuration was identified, considering the major factors affecting the economic viability of the technology. The net present value of the supply chain was estimated to be $18.4 billion for operating over 10 years, achieving the maximum processing capacity of 900,000 tons of black mass per year. The economic viability of the technology was identified to be highly sensitive to the cost associated with purchasing black mass, which accounted for more than 60% of the total supply chain cost. The breakeven price of black mass was identified as $8.7/kg over which the supply chain was not economically sustainable. Additionally, we examined the non-cooperative scenarios where each tier tries to maximize its own profit to demonstrate how the overall profitability of the supply chain changes with different pricing strategies of sortation facilities and acid producers. We estimated that the maximum prices of non-recyclable paper and acid that the supply chain could tolerate were $0.89/kg and $8.5/kg, respectively, beyond which the supply chain was no longer sustainable.
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spelling doaj-art-e0013a8a848347d0a643dc767fb95c8e2025-01-23T07:56:41ZengAIMS PressClean Technologies and Recycling2770-45802024-06-0141224210.3934/ctr.2024002Designing profitable supply chains for lithium-ion battery recycling in the United StatesMajid Alipanah0Sunday Oluwadamilola Usman1Apurba Kumar Saha2Hongyue Jin3Department of Systems and Industrial Engineering, University of Arizona, 1127 E. James E. Rogers Way, Tucson, Arizona, 85721, United StatesDepartment of Systems and Industrial Engineering, University of Arizona, 1127 E. James E. Rogers Way, Tucson, Arizona, 85721, United StatesDepartment of Systems and Industrial Engineering, University of Arizona, 1127 E. James E. Rogers Way, Tucson, Arizona, 85721, United StatesDepartment of Systems and Industrial Engineering, University of Arizona, 1127 E. James E. Rogers Way, Tucson, Arizona, 85721, United StatesRecycling spent lithium-ion batteries (LIBs) has attracted lots of attention recently, due to the increasing demand for critical materials contained in LIBs, putting high pressure on their geological reserves. We evaluated the potential of bioleaching technology as a sustainable solution for recycling spent LIBs to help inform decision-making processes for stakeholders involved in LIB recycling supply chains. A supply chain model was developed to include required upstream processes with the objective of maximizing economic feasibility of LIB recycling through the technology. The model has been applied to the U.S. and an optimal supply chain configuration was identified, considering the major factors affecting the economic viability of the technology. The net present value of the supply chain was estimated to be $18.4 billion for operating over 10 years, achieving the maximum processing capacity of 900,000 tons of black mass per year. The economic viability of the technology was identified to be highly sensitive to the cost associated with purchasing black mass, which accounted for more than 60% of the total supply chain cost. The breakeven price of black mass was identified as $8.7/kg over which the supply chain was not economically sustainable. Additionally, we examined the non-cooperative scenarios where each tier tries to maximize its own profit to demonstrate how the overall profitability of the supply chain changes with different pricing strategies of sortation facilities and acid producers. We estimated that the maximum prices of non-recyclable paper and acid that the supply chain could tolerate were $0.89/kg and $8.5/kg, respectively, beyond which the supply chain was no longer sustainable.https://www.aimspress.com/article/doi/10.3934/ctr.2024002lithium-ion batterycircular economybioleachingcritical materials recoverynon-cooperative supply chain
spellingShingle Majid Alipanah
Sunday Oluwadamilola Usman
Apurba Kumar Saha
Hongyue Jin
Designing profitable supply chains for lithium-ion battery recycling in the United States
Clean Technologies and Recycling
lithium-ion battery
circular economy
bioleaching
critical materials recovery
non-cooperative supply chain
title Designing profitable supply chains for lithium-ion battery recycling in the United States
title_full Designing profitable supply chains for lithium-ion battery recycling in the United States
title_fullStr Designing profitable supply chains for lithium-ion battery recycling in the United States
title_full_unstemmed Designing profitable supply chains for lithium-ion battery recycling in the United States
title_short Designing profitable supply chains for lithium-ion battery recycling in the United States
title_sort designing profitable supply chains for lithium ion battery recycling in the united states
topic lithium-ion battery
circular economy
bioleaching
critical materials recovery
non-cooperative supply chain
url https://www.aimspress.com/article/doi/10.3934/ctr.2024002
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AT sundayoluwadamilolausman designingprofitablesupplychainsforlithiumionbatteryrecyclingintheunitedstates
AT apurbakumarsaha designingprofitablesupplychainsforlithiumionbatteryrecyclingintheunitedstates
AT hongyuejin designingprofitablesupplychainsforlithiumionbatteryrecyclingintheunitedstates