Circular economy strategy for waste management companies of electric vehicle batteries in Indonesia

Muhammad Habiburrahman, Ajun Tri Setyoko, Rahmat Nurcahyo, Hotmatua Daulay and Kaoru Natsuda

International Journal of Productivity and Performance Management, 2025, vol. 74, issue 11, 21-45

Abstract: Purpose - Electric vehicle (EV) battery waste is hazardous to human health and the environment. However, it also contains recoverable materials that can hold high value for the sustainability of the EV battery industry. Given the increasing sales of EVs and Indonesia’s ambition to become an EV leader in Asia, proper management of EV battery waste becomes crucial. This study seeks to develop strategies for Indonesian-based EV battery waste management companies to support the country’s growing EV adoption and advance the principles of a circular economy (CE). Design/methodology/approach - Data collection combines semi-structured interviews, surveys and site visits. The research instruments are based on the conceptual framework of CE and strategic management. Data processing is conducted using strengths-weaknesses-opportunities-threats (SWOT) analysis, internal factor evaluation (IFE) and external factor evaluation (EFE) analysis. Findings - The findings reveal that the Indonesian government has established regulations to classify and handle hazardous waste and published a roadmap for CE implementation. Three strategies have been formulated 1) joint ventures with foreign waste management companies, 2) cooperation with automakers as a third-party EV battery waste manager and 3) establish an EV battery repair shop. Waste management companies are encouraged to progressively enhance their battery repair, reuse, repurposing, refurbishing and recycling capabilities. Research limitations/implications - This study offers strategic insights for waste management companies to optimize EV battery waste management. Practical implications - This study offers practical implications for waste management companies and policymakers to enhance EV battery waste management, align with circular economic principles (particularly second-life applications) and create new revenue streams. Originality/value - This research contributes to environmental protection, employment opportunities and EV adoption by strengthening Indonesia’s battery waste management industry and providing policy recommendations.

Keywords: Circularity; Battery second life; Sustainability; Electric vehicle; Waste management (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijppmp:ijppm-01-2024-0015

DOI: 10.1108/IJPPM-01-2024-0015

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