A Review of Research on Power Battery Closed-Loop Supply Chains from the Perspective of Supply Chain Management Theory
DOI:
https://doi.org/10.63313/EPP.2008Keywords:
Closed-Loop Supply Chain, Power Battery, Echelon Utilization, Recycling Channel, Policy Intervention, Behavioral Operations ManagementAbstract
Driven jointly by carbon neutrality strategies and the rapid expansion of the new energy vehicle (NEV) industry, the large-scale retirement of power batteries has rendered resource circulation and environmental pollution problems increasingly urgent, and the power battery closed-loop supply chain (CLSC) has accordingly emerged as a frontier subfield of supply chain management research. Adopting supply chain management theory as the analytical perspective, this paper systematically reviews domestic and international literature published between 2001 and 2025. After clarifying the theoretical foundations—circular economy theory, extended producer responsibility (EPR), transaction cost economics, and contract theory—it synthesizes research progress along six thematic dimensions: recycling channel selection, pricing and contract coordination, echelon (second-life) utilization, government policy intervention, social preference behavior, and second-hand market competition, followed by a critical assessment along the three dimensions of theory, method, and context. The review finds that the theoretical paradigm of this field has shifted from static efficiency orientation toward dynamic resilience, greening, and intelligence orientation, and that a preliminary multidisciplinary, multimethod, and multiobjective research framework has taken shape; however, problems remain prominent, including unrealistic model assumptions, the absence of dynamic evolution characterizations, superficial treatment of sustainability mechanisms, and the disconnection between digital technologies and management science. Accordingly, this paper proposes six operationalizable future research agendas—dynamic multiperiod modeling, behavioral closed-loop supply chains, the integration of digital technology and governance, supply chain resilience, multiobjective optimization under carbon constraints, and cross-chain collaborative governance—to inform subsequent theory building and practical innovation.
References
[1] International Energy Agency. Global EV Outlook 2024[R]. Paris: IEA, 2024.
[2] China Association of Automobile Manufacturers. Economic operation of the automotive industry in 2024[R]. Beijing: CAAM, 2025. (in Chinese)
[3] China Automotive Battery Innovation Alliance. Operation of the power battery industry in 2024[R]. Beijing: CABIA, 2025. (in Chinese)
[4] European Parliament, Council of the European Union. Regulation (EU) 2023/1542 of the European Parliament and of the Council of 12 July 2023 concerning batteries and waste batteries[Z]. Official Journal of the European Union, 2023.
[5] Ministry of Industry and Information Technology, Ministry of Science and Technology, Ministry of Environmental Protection, et al.Interim measures for the administration of recycling and utilization of power batteries for new energy vehicles[Z]. Beijing, 2018. (in Chinese)
[6] Ministry of Industry and Information Technology, et al.Administrative measures for echelon utilization of power batteries for new energy vehicles[Z]. Beijing, 2021. (in Chinese)
[7] Stahel W R. The circular economy[J]. Nature, 2016, 531: 435-438.
[8] Geissdoerfer M, Savaget P, Bocken N M J, et al.The circular economy: a new sustainability paradigm?[J]. Journal of Cleaner Production, 2017, 143: 757-768.
[9] Lindhqvist T. Extended producer responsibility in cleaner production: policy principle to promote environmental improvements of product systems[D]. Lund: Lund University, 2000.
[10] Atasu A, Van Wassenhove L N, Sarvary M. Efficient take-back legislation[J]. Production and Operations Management, 2009, 18(3): 243-258.
[11] Wang H D, Gu Y F, Li L Q, et al.Operating models and development trends in the extended producer responsibility system for waste electrical and electronic equipment[J]. Resources, Conservation and Recycling, 2023, 127: 159-167.
[12] Williamson O E. The economic institutions of capitalism: firms, markets, relational contracting[M]. New York: Free Press, 1985.
[13] Spengler J J. Vertical integration and antitrust policy[J]. Journal of Political Economy, 1950, 58(4): 347-352.
[14] Cachon G P. Supply chain coordination with contracts[M]//Graves S C, de Kok A G. Handbooks in operations research and management science: supply chain management. Amsterdam: Elsevier, 2003: 227-339.
[15] Fehr E, Schmidt K M. A theory of fairness, competition, and cooperation[J]. Quarterly Journal of Economics, 1999, 114(3): 817-868.
[16] Rabin M. Incorporating fairness into game theory and economics[J]. American Economic Review, 1993, 83(5): 1281-1302.
[17] Bassi M, Pagnozzi M, Piccolo S. Optimal contracting with altruism and reciprocity[J]. Research in Economics, 2018, 68: 27-38.
[18] Savaskan R C, Bhattacharya S, Van Wassenhove L N. Closed-loop supply chain models with product remanufacturing[J]. Management Science, 2004, 50(2): 239-252.
[19] Guide V D R, Van Wassenhove L N. The evolution of closed-loop supply chain research[J]. Reverse Logistics Magazine, 2009(7): 40-42.
[20] Souza G C. Closed-loop supply chains: a critical review, and future research[J]. Decision Sciences, 2013, 44(1): 7-38.
[21] Govindan K, Soleimani H. A review of reverse logistics and closed-loop supply chains: a Journal of Cleaner Production focus[J]. Journal of Cleaner Production, 2017, 142: 379-408.
[22] Savaskan R C, Van Wassenhove L N. Reverse channel design: the case of competing retailers[J]. Management Science, 2006, 52(1): 1-14.
[23] Hong X P, Xu K, Du P, et al.Joint advertising, pricing and collection decisions in a closed-loop supply chain[J]. International Journal of Production Economics, 2019, 167: 12-22.
[24] Feng L P, Govindan K, Li C. Strategic planning: design and coordination for dual-recycling channel reverse supply chain considering consumer behavior[J]. European Journal of Operational Research, 2021, 260: 601-612.
[25] Lu Y J, Xu X N, Ai X Z. Dual-channel collection decisions in closed-loop supply chains under third-party scale effects[J]. Journal of Industrial Engineering and Engineering Management, 2022, 32(2): 207-217. (in Chinese)
[26] Umangi P, Kant R, Shankar R. Effect of buyback price on channel’s decision parameters for manufacturer-led close loop dual supply chain[J]. Opsearch, 2020, 57: 438-461.
[27] Jafari H, Hejazi S R, Morteza R B. Sustainable development by waste recycling under a three-echelon supply chain: a game-theoretic approach[J]. Journal of Cleaner Production, 2024, 142: 2252-2261.
[28] Li C F, Lai X X, Zhou C, et al.Evolutionary game analysis of processor-led mobile phone collection channel decisions[J]. Soft Science, 2023, 33(10): 93-99. (in Chinese)
[29] Wang W B, Fan L L, Zhou W M. The impact of collection investment cost sharing on closed-loop supply chain decisions under reward-penalty mechanisms[J]. Industrial Technology & Economy, 2023, 36(6): 146-154. (in Chinese)
[30] Guo M B, Shu M, Zhang Z J. Optimal differential pricing decisions for echelon utilization of power batteries[J]. Industrial Engineering Journal, 2020, 23(6): 109-116. (in Chinese)
[31] Li C F, Wang M M. Tripartite evolutionary game simulation of “Internet+” WEEE collection based on system dynamics[J]. Value Engineering, 2020(15): 19-21. (in Chinese)
[32] Zhang M M, Li X D, Ma L B. Research on echelon utilization of power batteries based on blockchain technology[J]. Science and Technology Management Research, 2020, 40(18): 225-231. (in Chinese)
[33] Zeng X L, Li J H, Singh N. Recycling of spent lithium-ion battery: a critical review[J]. Critical Reviews in Environmental Science and Technology, 2014, 44(9): 1129-1165.
[34] Xia Z K. Current status and policy analysis of echelon utilization of power batteries[J]. Automobile & Parts, 2022(38): 42-45. (in Chinese)
[35] Wang B. Development status of and suggestions for China’s power battery recycling system for new energy vehicles[J]. Logistics Sci-Tech, 2024(2): 72-75. (in Chinese)
[36] Liu S Q, Wang F, Liu D W, et al.Feasibility analysis of echelon utilization of lithium iron phosphate power batteries[J]. Chinese Journal of Power Sources, 2020, 40(3): 521-524. (in Chinese)
[37] Zhang L, Liu Y Q, Zhang L, et al.The commercial value of power battery echelon utilization in China’s energy storage industry[J]. Journal of Beijing Institute of Technology (Social Sciences Edition), 2018(6): 34-44. (in Chinese)
[38] Xie Y H, Zhang T Z, Tang J X, et al.Research on the construction of a spent power battery recycling system[J]. Environmental Science and Management, 2019, 44(6): 169-173. (in Chinese)
[39] Cheng X Q. Technological progress and application prospects of power battery echelon utilization[J]. Low Carbon World, 2024, 14(6): 46-48. (in Chinese)
[40] Chang X Y, Wu J, Li T, et al.The joint tax-subsidy mechanism incorporating extended producer responsibility in a manufacturing-recycling system[J]. Journal of Cleaner Production, 2021, 210: 821-836.
[41] Wang W B, Zhao X J, Zhang P, et al.Incentive mechanisms for closed-loop supply chains under double information asymmetry[J]. Chinese Journal of Management Science, 2019(10): 69-77. (in Chinese)
[42] He L, Wang H, Liu F. Emission abatement in low-carbon supply chains with government subsidy and information asymmetry[J]. International Journal of Production Research, 2024, 62(18): 6598-6626.
[43] Zou H, Qin J, Yang P. Network equilibrium model of low-carbon supply chains considering fairness concerns under carbon trading[J]. Statistics & Decision, 2023(23): 168-173. (in Chinese)
[44] Sharma A, Dwivedi G, Singh A. Game-theoretic analysis of a two-echelon supply chain with option contract under fairness concerns[J]. Computers & Industrial Engineering, 2019, 137: 106096.
[45] Yao F M, Zhu J J, Yan Y L, et al.Subsidy strategies for power battery closed-loop supply chains considering green design under fairness concerns[J]. Journal of Systems Science and Mathematics, 2024, 44(9): 2730-2750. (in Chinese)
[46] Ge Z H, Hu Q Y. Who benefits from altruism in supply chain management?[J]. American Journal of Operations Research, 2021, 2: 59-72.
[47] Du S F, Nie T F, Chu C B, et al.Reciprocal supply chain with intention[J]. European Journal of Operational Research, 2019, 239: 389-402.
[48] Xie J P, Li J, Yang F F, et al.Multi-level contract decision optimization for closed-loop supply chains of new energy vehicles[J]. Journal of Industrial Engineering and Engineering Management, 2020, 34(2): 180-193. (in Chinese)
[49] Wang M Y. Profit allocation in supply chain finance based on the Shapley value method[J]. China Storage & Transport, 2021(8): 162-163. (in Chinese)
[50] Wu S Y, Yu L, Deng B C, et al.Design of revenue-sharing contracts in general contracting engineering supply chains under different fairness reference points[J]. Industrial Engineering Journal, 2023, 26(4): 52-61. (in Chinese)
[51] Liu J J, Xue J, Zhang W S. Contract coordination of power battery collection channels under government carbon tax and subsidies[J]. Science and Technology Management Research, 2022, 22: 160-168. (in Chinese)
[52] Zhao P, Xiong Z K, Xiong Y. The impact of retailers opening second-hand markets on supply chain members’ profits[J]. Systems Engineering — Theory & Practice, 2023, 35(4): 882-891. (in Chinese)
[53] Xiao Y. Choosing the right exchange-old-for-new programs for durable goods with a rollover[J]. European Journal of Operational Research, 2017, 259(2): 512-526.
[54] Debo L G, Toktay L B, Van Wassenhove L N. Market segmentation and product technology selection for remanufacturable products[J]. Management Science, 2005, 51(8): 1193-1205.
[55] Ferguson M E, Toktay L B. The effect of competition on recovery strategies[J]. Production and Operations Management, 2006, 15(3): 351-368.
[56] Atasu A, Sarvary M, Van Wassenhove L N. Remanufacturing as a marketing strategy[J]. Management Science, 2008, 54(10): 1731-1746.
[57] Harper G, Sommerville R, Kendrick E, et al.Recycling lithium-ion batteries from electric vehicles[J]. Nature, 2019, 575: 75-86.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 by author(s) and Erytis Publishing Limited
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
How to Cite
