Integrating a circular economy approach in the supply chain process for electric vehicle batteries : following the Umicore example ?

Abstract

Deer is an aftermarket lead acid battery and other parts supplier for internal combustion engine cars with a traditional linear market economic model. Currently electric cars are becoming more and more important, due to national and EC regulations and environmental concerns raised at international meetings such as the COP21, and their batteries are delivered directly by the car manufacturers. These batteries fit into a new circular economic model as they are destined to be recycled and cannot be replaced on the aftermarket. Certain companies, such as Umicore have taken advantage of the situation, adopted the circular economic model and integrated recycling along with research and development in these areas into their business. Other companies, such as Cambio and Keolis which provide car sharing services, fit into the circular model and offer a new way to approach the car market and the need for transportation. Assuming that Deer cannot compete with Umicore as a middleman or a recycler and cannot compete with Cambio and TBR(Keolis) as a shared service supplier, where can Deer fit in, in the long term, as lithium-ion batteries take over the car battery market, replacing the traditional ICE batteries? In other words, could Deer use any of Accenture’s circular business models, which would be, to a certain extent, following the Umicore example, and in fine integrate a circular economy approach in the supply chain process for their car batteries? Although Deer’s market will decline in the short term, it can develop a niche market for certain parts, especially batteries, reconsider recycling possibilities, possibly collaborate with partners in specific business areas and, in the long term, aim for new business prospects in connection with electric cars.