Circular EV battery business models are becoming essential as electric vehicles scale rapidly across Europe and global markets. While EVs play a critical role in reducing emissions, the batteries that power them raise complex challenges around resource use, lifecycle responsibility, and end-of-life management.
A new open-access scientific paper published in Technovation addresses this question by examining circular business models for EV batteries across the entire lifecycle. The study was authored by Mao Xu, James Quang Huy Duong, Carlos Fernández de Arroyabe Arranz, Hetty Wenxian Sun, and Li Zhou, all from the University of Greenwich, the coordinating institution of the CIRCUBATT project.
Titled “Developing a holistic circular business model framework for the EV battery closed-loop supply chain: A data-driven approach,” the paper appears in Technovation’s special issue on smart and resilient supply chain innovation. It offers timely insights for industry, policymakers, and researchers working to make the battery value chain more sustainable and resilient.
👉 Read the full open-access article in Technovation:
https://www.sciencedirect.com/science/article/pii/S0166497226000222?via%3Dihub
Why circular EV battery business models matter now
The rapid growth of electric mobility has led to rising demand for critical raw materials such as lithium, cobalt, and nickel. This trend increases pressure on global supply chains and raises concerns about environmental impacts, resource security, and battery waste.
At the same time, new policy frameworks, including the EU Battery Regulation, are setting stricter rules on lifecycle responsibility. Companies must now ensure traceability, recycled content, and proper end-of-life management.
The Technovation paper argues that technology alone cannot solve these challenges. Recycling processes, diagnostics, and advanced materials play an important role, but they need to be supported by clear and viable circular business models. These models define how value is created, delivered, and captured while keeping batteries and materials in use for as long as possible.
From fragmented solutions to circular EV battery business models
Many current efforts to improve battery circularity focus on single stages, such as recycling or second-life use. According to the authors, this fragmented approach limits impact. Real progress requires a lifecycle-wide perspective that links production, use, reuse, and recycling.
To achieve this, the study combines insights from industrial ecology, which focuses on closing material loops, with the resource-based view of the firm, which explains how companies build capabilities to implement circular strategies. This combination helps bridge sustainability goals with business decision-making.
What data reveals about circular EV battery business models in practice
Beyond reviewing academic literature, the researchers analysed over 1,800 press releases from 51 companies across the EV battery supply chain. They used machine-learning techniques to identify how circular business models for EV batteries appear in real-world company communications.
This analysis highlights a broad range of models already in use. These include battery leasing, charging infrastructure services, repair, remanufacturing, repurposing, recycling, shared mobility, and digital solutions such as battery management systems and digital battery passports.
One important insight stands out. Digital and service-based models appear frequently in industry practice but receive less attention in academic research. This gap shows why data-driven studies are essential to understanding how circularity is evolving on the ground.
How circular EV battery business models span the full lifecycle
The framework presented in the paper follows EV batteries across their full lifecycle. In early stages, service-based approaches such as battery leasing and EV sharing can lower upfront costs and increase battery use. At the same time, digital tools collect data that supports later decisions.
As batteries age, diagnostics, repair, refurbishing, and remanufacturing help extend their useful life. These activities determine whether a battery remains suitable for vehicles or moves to a second-life application. In second life, repurposed batteries often support stationary energy storage, which creates new value and delays recycling.
At the final stage, recycling recovers valuable materials and feeds them back into battery production. Digital battery passports and advanced battery management systems support every stage, as they enable traceability, compliance, and data-driven decision-making.
Implications of circular EV battery business models for industry and policy
For companies, the study shows that success depends on combining circular business models, not applying them in isolation. Linking first-life service models with second-life use and end-of-life recycling can improve both environmental and economic outcomes.
However, the authors also note key challenges. Circular business models for EV batteries require investment in diagnostics, reverse logistics, digital systems, and partnerships. Uncertainty around residual values and material prices remains a major barrier.
For policymakers, the findings highlight the importance of supportive regulation. Clear rules on traceability and recycled content, combined with shared digital infrastructures, can accelerate the uptake of circular models across Europe.
How this research supports CIRCUBATT
This Technovation publication provides a strong scientific foundation for CIRCUBATT’s work on circular EV battery value chains. The lifecycle-wide framework helps structure project activities, from designing circular business cases to identifying capability gaps and engaging with policymakers.
By linking theory with real-world data, the study supports CIRCUBATT’s goal of delivering practical and scalable pathways toward a more circular, resilient, and competitive European battery ecosystem.
👉 Explore CIRCUBATT results and project outputs:
https://circubatt-project.eu/results/
👉 Watch the CIRCUBATT project video to learn more about the project:
https://www.youtube.com/watch?v=6zSHkIZGmI0
About CIRCUBATT
The CIRCUBATT project is a Horizon Europe initiative (grant number 101192383) dedicated to redefining the European battery sector by making it smarter, greener, and more circular. The project focuses on integrating AI, data analytics, and sustainable design across the entire battery lifecycle, from design to recycling.
CIRCUBATT aims to reduce Europe’s dependency on critical raw materials, lower environmental impacts, and strengthen competitiveness in the global battery market. Stay updated on progress and upcoming events by following the project on LinkedIn and visiting the CIRCUBATT website.