The shaping of EV battery supply chains: resilience challenges and circular economy alternatives

Abstract

Purpose: The growing demand for EV (electric vehicle) batteries is driving the emergence of global supply chains highly dependent on the extraction of critical mineral metals. Such dependence brings new challenges to the sustainability and resilience of EV battery supply chains in the automotive sector. This paper sheds light on the resource dependence constraints and sustainability challenges shaping the configuration of emerging EV battery supply chains. Research Approach: A horizon-scanning approach is taken to capture insights from current studies and industrial trends in the automotive sector. The paper draws from Resource Dependence Theory (RDT) important concepts to characterise buffering and bridging strategies to address resource dependence issues concerning the sourcing of critical minerals. The identified strategies are linked to circular economy solutions for end-of-life recovery of EV battery metals. Findings and Originality: The paper points out critical resource dependencies posing resilience and sustainability challenges to EV battery supply chains. The conceptual connections between RDT and circular economy offer an original theoretical perspective, supporting the elaboration of purposeful circular economy approaches to address key resilience and sustainability challenges in EV battery supply chains. To address emerging challenges, the creation of circular supply chains, where essential metals can be ‘mined back’ from end-of-life batteries, has become of strategic importance. Research Impact: The paper contributes to developing a better understanding of the contextual and operational complexities involved in the management of emerging EV battery supply chains. It also offers an original theoretical perspective linking RDT with circular economy approaches, this way expanding knowledge in the area. Practical Impact: The paper shows that the recovery of secondary raw materials through battery recycling will be of crucial importance to address resource dependence issues concerning the automotive sector. The linkages between RDT buffering/bridging strategies and specific circular economy approaches provide a helpful managerial framework to support supply chain managers to strategically address resource dependence challenges faced by EV battery supply chains.