Optimal decisions of closed-loop electric vehicle batteries supply chains under extended producer responsibility policies

Electric vehicle (EV) battery recycling faces operational challenges and low recovery rates in closed-loop supply chains (CLSCs). Extended producer responsibility (EPR) policies are vital for improving environmental protection. This study analyses EPR-driven interventions’ impact on CLSCs efficiency for EV batteries. Objectives include: (1) Assessing current operational challenges and recovery efficiency in EV battery recycling. (2) Exploring effects of government interventions (non-intervention, subsidies, and reward-penalty systems) on recycling efficiency. (3) Analysing stakeholder interactions under different EPR measures. A manufacturer-led Stackelberg two-stage game model examines CLSCs dynamics and stakeholder behaviour under various EPR scenarios. EPR system impact on battery recycling varies with government intervention. Without intervention, EPR has little effect on prices and recycling rates. When manufacturers handle recycling, their profits rise, and increased consumer sensitivity boosts recycling rates. Manufacturer subsidies are more effective than retailer subsidies in enhancing recycling rates. Government incentives and penalties raise recycling prices and volumes, benefiting both manufacturers and retailers. With manufacturers responsible, subsidies improve their profits and recycling rates, while incentives and penalties enhance overall supply chain performance. For retailers, incentives and penalties improve recycling rates, suggesting a more direct impact on market performance. Reward-penalty mechanisms significantly improve recycling rates.