A Game Theory Approach in Quality Classification and Secondary Use of Electric Vehicle Used Batteries

Abstract

At present, electric vehicles have become one of the main directions for the development of today's automotive industry by virtue of their high energy utilization efficiency and low environmental pollution. With the popularity of electric vehicles, the recycling of their batteries will become a challenge in the future. At present, the recycling system of vehicle batteries is not perfect. How to evaluate different quality of batteries to decide whether to reuse them or to remanufacture them directly is a question worth exploring. The purpose of this paper is to discuss the quality grading strategy of used batteries and make decisions based on the evaluation results by constructing a game theory model that includes four parties: new energy vehicle manufacturers, consumers, battery manufacturers, and recyclers, with the goal of maximizing the utility of the parts in the closed-loop supply chain of electric vehicles. This study is beneficial for the government and managers to better understand the electric vehicle battery closed-loop supply chain, and for the sustainable development of the supply chain as well.