Optimizing Reverse Logistics Supply Chain Network­­ for Sustainable Value Recovery from Li-Ion Batteries in the United States

Li-ion batteries (LIB) are increasingly used in renewable energy storage (e.g., solar and wind) and (hybrid) electric vehicles, contributing to the UN sustainable development goals and net zero emissions goal. However, proper management of hazardous wastes after their end of life (EOL) is a great concern. Value recovery from spent LIBs could facilitate sustainable EOL management and recover valuable materials to create a resilient supply of the critical raw materials such as lithium and cobalt. This study focuses on the design of an optimal reverse logistic supply chain network for sustainable collection and recycling of spent LIBs. A bi-level mixed integer optimization model has been developed to (1) evaluate the impact of governmental policies on the adoption of LIB recycling technologies and (2) maximize the economic and environmental benefits from LIB recycling in the next ten years. The model was applied to the case of United States and suggested the optimal facility locations, processing capacities, recycling technology, and material flows for LIB recyclers. According to our analysis, a substantial financial incentive would be required from the government to ensure the LIB recycling business to be economically viable, as the current recycling technologies and infrastructure need further development and optimization, and the current LIB recycling market is relatively small. Moreover, a carbon tax-based policy has been analyzed as an alternative strategy to promote a profitable LIB recycling business. It was predicted that a carbon tax as low as $25 per-ton of CO2 equivalent emissions would promote sustainable recycling of spent LIBs