Consumer heterogeneity, integration strategies, and electric vehicle batteries recycling

Consumer plays a crucial role throughout the electric vehicle batteries (EVBs) lifecycle, from manufacturing to recycling, while existing studies neglect consumer heterogeneity in both phases. This study examines how consumer heterogeneity affects the integration decisions of production and recycling from the perspective of closed-loop supply chain (CLSC) by constructing four models. Further, game models are developed to derive three recycling cases, including no recycling, partial recycling, and full recycling. The impacts of parameters are analysed from perspectives of consumer and production-recycling. The results show that: (1) Recycling cases depend on production costs and consumer evaluation levels. The full recycling is (not) dominated under the independent collector (all models) at higher costs (consumer evaluation levels). (2) The centralised model maintains optimal system profits, with integration proving significant value in partial and full recycling. The integration eliminates recycling price differences while enhancing recycling incentives in full recycling. (3) When the net value of recycling is low to medium, integration with retailers mitigates consumer evaluation risks; otherwise, collectors’ partnership maximises production and recycling, with independent collectors best managing consumer evaluations. (4) Increased consumer evaluations benefit consumers in partial recycling while impairing repurchases in full recycling.