US-Mexico Second-Hand Electric Vehicle Trade: Battery Circularity and End-of-Life Policy Implications

Alissa Kendall and Francisco Parés Olguín

Institute of Transportation Studies, Working Paper Series from Institute of Transportation Studies, UC Davis

Abstract: International second-hand vehicle (SHV) exports are a multi-billion-dollar market for the US and an integral process in removing older vehicles from the road and enabling a robust new vehicle market. Mexico is the largest importer of SHVs from the US. As the US rapidly increases electric vehicle (EV) sales to meet decarbonization targets for the transportation sector, EVs will be an increasing large fraction of SHVs. While the benefits of EV adoption are numerous, introducing a radically new technology such as EVs without responsive measures in second-hand market regions may lead to an unintended transfer of economic and environmental burdens, especially if waste EV batteries cannot be managed properly. This research undertook a battery material flow analysis, life cycle assessment of SHVs traded from the US to Mexico, and a qualitive analysis of environmental and transport justice implications of SHV trade. The research finds that SHVs disproportionately contribute to waste battery generation in Mexico, and that second-hand EVs are frequently retired early due to a lack of repairability. In terms of life cycle emissions, SH EVs still contribute to reduced GHG emissions and air pollution relative to internal combustion engine vehicles newly sold in Mexico, but at end-of-life, their batteries are being disposed of in landfills, rather than in recycling facilities. From a justice standpoint, coordination between the US and Mexico and anticipatory policies are needed to ensure that only EVs with sufficient remaining battery life are transferred between the US and Mexico, and that sufficient infrastructure exists to safely dispose of waste EV batteries in Mexico. View the NCST Project Webpage

Keywords: Business; Engineering; Social and Behavioral Sciences; Electric batteries; Electric vehicles; Environmental impacts; Life cycle analysis; Used cars; Waste management (search for similar items in EconPapers)
Date: 2024-12-01
New Economics Papers: this item is included in nep-ene, nep-env, nep-int and nep-tre
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