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Optimization of recycling networks for EV batteries: Location strategy and dynamic evolution in the Yangtze River
Chao Wang1, Shihan Yu1, Zhonglin Ma1
1Institute of Blue and Green Development, Shandong University, Weihai, China; Weihai Institute for Interdisciplinary Research, Shandong University, Weihai, Shandong, China.
Abstract:
The rapid growth of end-of-life power batteries creates an urgent need for economically efficient and spatially coordinated recycling networks in China. Taking the Yangtze River Delta urban agglomeration as a case study, this study develops a dynamic recycling network optimization framework by combining retired-battery flow projection with centralized and decentralized processing mode comparison. The results show that decentralized processing can reduce early-stage investment pressure by using existing qualified enterprises, whereas centralized processing gradually becomes more competitive as retired-battery volumes increase and economies of scale emerge. After accounting for the time value of money, the centralized mode still shows positive long-term economic advantages, but the magnitude and timing of this advantage vary substantially across regions. The transition from decentralized to centralized processing should therefore not be determined by a uniform year, but should depend on regional flow density, facility utilization, and investment recovery timing. The sensitivity analysis further indicates that cascade utilization price, recycling sales price, and government subsidy are the key drivers of recycling profitability. These findings provide practical guidance for region-specific recycling network planning and policy design in high-density urban agglomerations.
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