EU’s Action Plan for a Circular Economy in Practice - Stakeholders response to adopting circular economy initiative for electric vehicles batteries in Sweden

Abstract

Despite EU and national climate goals, transportation-related emissions are on the rise, accounting for almost a quarter of EU GHG emissions. Policymakers, particularly in the European Union, are beginning to question the future of mobility as a result of these unfavourable implications and tendencies. The European Commission has responded by introducing a number of strategies and tightening policies and regulations focused on reducing CO2 emissions significantly by 2025. In line with this, electrifying roads and public transportation is widely believed to be an effective way to cut carbon emissions. As a result, electric cars (EVs) are becoming increasingly popular in the EU. The aim of the research is to examine the implementation of the circular business model for electric vehicle batteries in Swedish industries using the Circular economy theory. More specifically, the research elaborates on stakeholders' perspectives on the industry's current CE strategies for lithium-ion batteries, which is critical for the future battery manufacturing process. Semi-structured interviews with thirteen industry experts involved in the Lithium-ion battery (LIB) life cycle in Sweden were conducted to identify current CE strategies across stakeholders, their operationalization, and underlying influencing factors. Although the concept of circular economy (CE) is relatively new to businesses, this study found that CE strategies are already being implemented and that efforts are already being made toward a circular business model transition. The study also discovered that one of today's greatest challenges is the lack of a well-functioning recycling industry, particularly in the recycling of batteries. This makes closing resource loops difficult, and another issue that is often overlooked is the urgent need for new critical raw materials, without which the transition to a low-carbon economy will be difficult. Finally, this study provides new knowledge crucial to the future adoption of circular business models in the manufacturing industry, as well as significant insights into present problems and enablers of the circular economy in the automobile industry