Policy Implications for Electric Vehicle Battery End-of-Life Management: Balancing Economic Viability and Environmental Sustainability in Southeast Asia: A Review

Abstract

The rapid acceleration of electric vehicle (EV) adoption in Southeast Asia, driven by national economic ambitions and climate commitments, presents a looming waste management crisis: end-of-life (EOL) lithium-ion batteries. This review article synthesizes current literature to analyze the dual challenge of managing this waste stream harnessing its economic potential through a circular economy while mitigating its significant environmental risks. We find that the Southeast Asian region is critically underprepared, with fragmented regulatory frameworks, nascent infrastructure, and a lack of specialized capacity for recycling and repurposing. The economic viability of recycling is hampered by volatile material prices, high processing costs, and the logistical complexities of the region's archipelagic geography. Conversely, a purely environmental focus that mandates stringent recycling without economic support risks fostering informal, polluting sectors or creating stranded assets. This article argues that a synergistic policy approach is essential. We propose a multi-pronged strategy centered on Extended Producer Responsibility (EPR) as a core policy mechanism, integrated with harmonized regulations, targeted economic incentives for formal recycling, investment in R&D for second-life applications, and robust capacity building. By proactively designing policies that align economic incentives with environmental imperatives, Southeast Asian nations can transform the impending EOL battery challenge into a strategic opportunity for sustainable growth, resource security, and regional leadership in the green economy.