System dynamics costing model for the capital cost estimation of electric vehicle batteries refurbishing facility

Muhammad Ahmed Kalwar, Asif Nawaz Wassan, Waleed Ahmed Sheikh, Muhammad Ali Khan and Hussain Bux Mari

International Journal of Industrial and Systems Engineering, 2024, vol. 48, issue 3, 377-404

Abstract: Electric vehicles (EVs) are considered sustainable vehicles due to low carbon emissions. Lithium-ion batteries (LIBs) are expensive electrical vehicle batteries (EVBs) due to their expensive rare raw materials, i.e., lithium, nickel and cobalt. With increased production of EVs, authors warned of the expected huge quantity of dismantled EVBs shortly and so explored their reusability. An in-depth review is conducted, and system dynamics (SD) model was developed in Anylogic whereas origin was used for graphs. The capital costs dynamics of the refurbishing facility were evaluated and the model was validated and initialised. The analysis was conducted in three sales scenarios: 1) locally; 2) regionally; 3) nationally. This paper provides a framework for entrepreneurs. The results indicated scenario-2 as more suitable with a maximum return on investment (ROI) (80.26%) and minimum payback period (626 weeks). Therefore, it is concluded that it would be feasible for the refurbishing facility to operate regionally rather than locally/nationally.

Keywords: electric vehicles; EVs; electric vehicle batteries; lithium-ion batteries; LIBs; batteries; refurbishment; recycling; sustainability; carbon; carbon emissions; infrastructural cost; capital cost; environment; refurbished EVBs; retired EVs; system dynamics. (search for similar items in EconPapers)
Date: 2024
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