Abstract With the rapid growth of the electric vehicle (EV) industry, efficient recycling of retired power batteries is essential for achieving circular economy objectives and environmental sustainability. This study examines the integration of a deposit‐refund system (DRS) and blockchain technology within the power battery closed‐loop supply chain. Three operational models are developed: a baseline model without a DRS, a manufacturer‐implemented DRS model, and a blockchain‐enhanced DRS model. Based on Stackelberg game formulations, equilibrium decisions on pricing, recycling, and traceability investment are analytically derived. Comparative analyses show that although blockchain adoption increases initial costs and product prices, it substantially improves traceability, consumer confidence, and overall supply chain profitability. Sensitivity analyses identify threshold effects of deposit levels, government subsidies, and the proportion of batteries suitable for comprehensive utilization. Life‐cycle assessment further demonstrates that the DRS, particularly when combined with blockchain, significantly reduces environmental impacts per unit product. This study provides theoretical insights into the interaction between digital technologies and circular economy mechanisms, and offers actionable implications for policymakers and industry practitioners seeking to enhance sustainability and efficiency in the EV battery supply chain.
Jia et al. (Wed,) studied this question.