Managing Rebound Effect of Electric Vehicle Batteries: Exploring Potential Reuse Scenarios along with Estimating Cost-Benefit Analysis

Abstract The sustainable transition of automotive sector to electric vehicles (EV) is conducive for carbon neutrality. However, the prospective increase in the production of EV batteries will bring a significant anthropogenic challenge as a rebound effect after the first end of life (EOL). Therefore, it is imperative to explore the potential options of waste management of EV stripped parts after their EOL from the EV perspective, such as lithium ion batteries (LIB). Pakistan being a developing country vulnerable to climate change and ranked as the 5th most populated country in the world is susceptible to EV batteries waste. This study uncovered possible reuse options for EV batteries in Pakistan after their first EOL and extended the scope of this study to inspect the economic feasibility of reuse using cost-benefit analysis (CBA). The results reveal that the second life of EV batteries can be considered as a substitute for new batteries in photovoltaic (PV) residential storage systems, electric bikes, and reefer containers. The net present value (NPV) analysis at a discount rate of 15% suggests that the substitution of EV batteries is economically feasible in all three case studies. However, 12% of IRR in the electric bikes and payback period of reefer containers is not encouraging, as cost sensitivities are involved. The implications of the study may benefit other developing and populated countries in the sustainable management of EV batteries.