Circularity as a lever for sustainable development in Sub-Saharan Africa? An exploration of business models for second-life lithium-ion batteries

Abstract

The rapid growth in global demand for lithium-ion batteries, driven by electric mobility and renewable energy systems, raises concerns about resource depletion and environmental pollution resulting from improper disposal. At the same time, Sub-Saharan Africa faces significant development challenges, including limited access to energy. In this context, reusing lithium-ion batteries after their first use offers a promising solution to mitigate environmental harm while expanding affordable energy access and supporting local development. However, there is a lack of empirical research on how business models can facilitate the reuse of lithium-ion batteries, particularly in developing economies.

This thesis investigates how business models for second-life lithium-ion batteries contribute to sustainable development in Sub-Saharan Africa. Based on a multiple case study approach and qualitative interviews, it analyses business model elements and impacts, develops five empirically grounded archetypes, and identifies barriers to their implementation. The business model archetypes are: Circular Design Manufacturer, Battery-as-a-Service Provider, Integrated Battery Lifecycle Operator, Energy Solution Provider with Remanufacturing Capabilities, and EOL Service Provider with Remanufacturing Capabilities. The archetypes differ in their positions within the battery value network and in the implementation of additional key business model components, including high lifecycle thinking, leasing models, technology as a key competency, and controlled take-back systems.

All five business model archetypes support economic, environmental and social impacts on sustainable development. However, archetypes that implement the key business model components can generate enhanced impacts. For instance, high lifecycle thinking reduces remanufacturing costs, leasing models improve affordability and system reliability, technology as a key competency enables advanced remanufacturing and monitoring, and controlled take-back systems improve battery recovery and safe disposal.

Moreover, the study identifies regulatory, market, technological, cultural and supply chain barriers that hinder the implementation of business models for second-life batteries in Sub-Saharan Africa including difficulties in securing funding, prohibitions of all e-waste imports and a lack of design for multiple life cycles. The analysis also shows how specific barriers can be addressed by key business model components.

This thesis contributes to circular business model theory by offering an empirically grounded typology of archetypes tailored to the Sub-Saharan African context, demonstrating how key business model components can enhance impacts on sustainable development. The study also highlights differences in barriers and assumptions from developed economies, such as a greater reliance on informal collection networks and diverse sources of retired batteries beyond electric vehicles.