Effects of CO2-Penalty Costs on the Production and Recycling Planning of Lithium-Ion Batteries

Abstract To reduce the high impacts of lithium-ion batteries, closed-loop supply chains using recycling and reuse are established. Simultaneously, car manufacturers face legal requirements based on the carbon emissions of their products. Therefore, these manufacturers aim to reduce carbon emissions in their entire supply chain. Hence, CO2-penalty costs in the form of taxes or contractual penalties are likely to be inforced. To analyze their effects, we formulate a model for the integrated production and recycling planning. By applying the model to an illustrative case study, it is shown that the level of the penalty costs influences carbon emissions.