Project 1-3

This project investigates the economics of circular battery production. Usually, investments and operating costs of production and recycling systems are determined by economies of scale with regard to the installed capacity. Decisions regarding the installation and expansion of production and recycling capacities for batteries are furthermore influenced by the highly dynamic market environment. This poses several challenges for managerial decision-making and calls for the development of advanced planning tools.

Specific objectives:

• Development of scenarios for new battery demand and spent battery supply using system dynamics simulation models
• Modeling and quantification of economies of scale in circular battery production by means of activity analysis
• Development of mathematical optimization models to determine optimal capacity ramp-up and operation strategies
• Data collection, model parametrization and validation (in close collaboration with other projects)
• Investigation of capacity strategies and formulation of recommendations for relevant stakeholders

Expected outcome:

• Modular modeling toolkit to analyze the economics of scale in circular battery production
• Comprehensive database for the economic analysis of battery production and recycling
• Recommendations regarding the establishment of a circular battery production in Germany and Europe