Sustainability Challenges of Lithium-Ion Battery Supply Chain: Evidence from the Indian Electric Vehicle Sector

Document Type : Research Paper

Authors

1 Ph.D., Department of Business and Creative Industries, University of the West of Scotland.

2 Ph.D., Business School, Middlesex University Dubai.

3 Ph.D., Associate Professor, Middlesex University Dubai.

4 Ph.D., Faculty of Business and Management, Universiti Teknologi MARA, 42300 Puncak Alam, Selangor, Malaysia.

10.22059/jitm.2025.99931

Abstract

This study critically examines the sustainability challenges within the lithium-ion battery (LIB) supply chain in India's electric vehicle (EV) sector, an area of growing importance due to the rapid expansion of EV adoption. While LIBs are essential for EVs due to their high energy density and reliability, their production and disposal pose significant environmental, social, and economic sustainability challenges. These include resource depletion, environmental degradation, ethical concerns in raw material sourcing, and inefficient recycling processes. This study adopts a qualitative case study approach, focusing on three leading Indian automotive companies, to explore these challenges in depth. Data were collected through semi-structured interviews with key stakeholders involved in various stages of the LIB supply chain, including production, waste management, and recycling. Key findings reveal that the primary environmental challenge is the lack of advanced green technologies for recycling and disposal, leading to high water and energy consumption, as well as hazardous waste emissions. Social challenges include unsafe labor practices, particularly in raw material extraction, and a shortage of skilled labor in battery recycling operations. On the economic front, the reliance on imported raw materials, coupled with high production and recycling costs, undermines the sector’s sustainability and profitability. The research contributes to the literature by providing a comprehensive understanding of the environmental, social, and economic dimensions of sustainability in the LIB supply chain. It also offers practical insights for stakeholders and policymakers aiming to foster a greener and more sustainable EV sector in India.  

Keywords

References

Ahbe, S., Weihofen, S., & Wellge, S. (2017). The ecological scarcity method for the European Union. Springer.
Ahuja, J., Dawson, L., & Lee, R. (2020). A circular economy for electric vehicle batteries: Driving the change. Journal of Property, Planning and Environmental Law, 12(3), 235–250. https://doi.org/10.xxxx/jpp.2020.0001
Arora, S., & Shen, W. (2020). Advances in rechargeable lithium-ion batteries and their systems for electric and hybrid electric vehicles. In Rechargeable lithium-ion batteries: Trends and progress in electric vehicles (pp. 99-126). [Publisher name].
Arshad, F., Lin, J., Manurkar, N., Fan, E., Ahmad, A., Tariq, M.-u.-N., Wu, F., Chen, R., & Li, L. (2022). Life cycle assessment of lithium-ion batteries: A critical review. Resources, Conservation and Recycling, 180, 106164. https://doi.org/10.xxxx/j.retrec.2022.106164
AZoCleantech. (2022). Environmental impacts of lithium-ion batteries. AZoCleantech. Retrieved May 29, 2022, from https://www.azocleantech.com/article.aspx?ArticleID=1520
Center for Climate and Energy Solutions. (n.d.). Plug-in electric vehicles: Literature review. C2ES. Retrieved August 26, 2022, from https://www.c2es.org/document/plug-in-electric-vehicles-literature-review/
Cusenza, M. A., Bobba, S., Ardente, F., Cellura, M., & Di Persio, F. (2019). Energy and environmental assessment of a traction lithium-ion battery pack for plug-in hybrid electric vehicles. Journal of Cleaner Production, 215, 634–649. https://doi.org/10.xxxx/jclepro.2019.106488
Dunn, J., Kendall, A., & Slattery, M. (2022). Electric vehicle lithium-ion battery recycled content standards for the US – targets, costs, and environmental impacts. Resources, Conservation and Recycling, 185, 106488. https://doi.org/10.xxxx/j.retrec.2022.106488
Earley, R., Kang, L., An, F., & Green-Weiskel, L. (2011). Electric vehicles in the context of sustainable development in China. The Innovation Center for Energy and Transportation (iCET), Background Paper, 9.
Engel, J. (n.d.). Development perspectives of lithium-ion recycling processes for electric vehicle batteries. [Publisher name].
Gebhardt, M., Beck, J., Kopyto, M., & Spieske, A. (2022). Determining requirements and challenges for a sustainable and circular electric vehicle battery supply chain: A mixed-methods approach. Sustainable Production and Consumption, 33, 203-217. https://doi.org/10.xxxx/j.spc.2022.03.012
Higgins, R., & Kruger, K. (1990). High energy non-rechargeable batteries and their applications. SAE Technical Paper Series.
Hua, Y., Liu, X., Zhou, S., Huang, Y., Ling, H., & Yang, S. (2021). Toward sustainable reuse of retired lithium-ion batteries from electric vehicles. Resources, Conservation and Recycling, 168, 105249. https://doi.org/10.1016/j.resconrec.2021.105249
Industry Week. (n.d.). EV has a problem: 90% of the battery supply chain does not exist. Industry Week. Retrieved August 26, 2022, from https://www.industryweek.com/supply-chain/article/21244607/ev-has-a-problem-90-of-the-battery-supply-chain-does-not-exist
Khalid, A. M., & Khuman, Y. S. C. (2022). Electric vehicles as a means to sustainable consumption: Improving adoption and perception in India. In J. Bhattacharyya, M. S. Balaji, Y. Jiang, J. Azer, & C. R. Hewege (Eds.), Socially responsible consumption and marketing in practice (pp. 20). Springer. https://doi.org/10.1007/978-981-16-64335_20
Klug, F. (2014). Logistics implications of electric car manufacturing. International Journal of Services and Operations Management, 17(3), 350. https://doi.org/10.1504/ijsom.2014.059573
Lambert, D. M. (2014). Supply chain management: Processes, partnerships, performance. Supply Chain Management Institute.
Mark, J. (1992). Environmental, health, and safety issues of sodium-sulfur batteries for electric and hybrid vehicles. In-vehicle safety (Vol. 4).
Miao, Y., Liu, L., Zhang, Y., Tan, Q., & Li, J. (2022). An overview of global power lithium-ion batteries and associated critical metal recycling. Journal of Hazardous Materials, 425, 127900. https://doi.org/10.1016/j.jhazmat.2021.127900
Mikolajczak, C., Kahn, M., White, K., & Long, R. T. (2012). Lithium-ion batteries hazard and use assessment. Springer Science & Business Media.
Mrozik, W., Rajaeifar, M. A., Heidrich, O., & Christensen, P. (2021). Environmental impacts, pollution sources, and pathways of spent lithium-ion batteries. Energy & Environmental Science, 14(12), 6099-6121. https://doi.org/10.1039/D1EE02294K
Naor, M., Coman, A., & Wiznizer, A. (2021). Vertically integrated supply chain of batteries, electric vehicles, and charging infrastructure: A review of three milestone projects from the theory of constraints perspective. Sustainability, 13(7), 3632. https://doi.org/10.3390/su13073632
Nature. (2022). Electric cars and batteries: How will the world produce enough? Nature. Retrieved September 11, 2022, from https://www.nature.com/articles/d41586-021-02222-1
Nicholson, P. (1978). Past and future development of the market for lithium in the world aluminium industry. In Lithium needs and resources (pp. 243–246).
Omar, N., Daowd, M., Van den Bossche, P., Hegazy, O., Smekens, J., Coosemans, T., & Van Mierlo, J. (2012). Rechargeable energy storage systems for plug-in hybrid electric vehicles—Assessment of electrical characteristics. Energies, 5(8), 2952–2988. https://doi.org/10.3390/en5082952
Ortego, A., Valero, A., Valero, A., & Restrepo, E. (2018). Vehicles and critical raw materials: A sustainability assessment using thermodynamic rarity. Journal of Industrial Ecology, 22(5), 1005-1015. https://doi.org/10.1111/jiec.12696
Pandey, D. A., Manocha, D. S., & Saini, D. P. (2020). A study on an automobile revolution and future of electric cars in India. Social Science Research Network. Retrieved August 15, 2020, from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3568382
Passarini, F., & Ciacci, L. (2021). Life cycle assessment (LCA) of environmental and energy systems. MDPI.
Peter, V. den B., Joeri, V. M., Jean-Marc, T., Julien, M., Gaston, M., & Frédéric, V. (2007). Evolutions in hydrogen and fuel cell standardization: The HarmonHy experience. World Electric Vehicle Journal, 1(1), 148–154.
Picatoste, A., Justel, D., & Mendoza, J. M. F. (2022). Exploring the applicability of circular design criteria for electric vehicle batteries. Procedia CIRP, 109, 107-112. https://doi.org/10.1016/j.procir.2022.01.016
Placke, T., Heckmann, A., Schmuch, R., Meister, P., Beltrop, K., & Winter, M. (2018). Perspective on performance, cost, and technical challenges for practical dual-ion batteries. Joule, 2(12), 2528-2550. https://doi.org/10.1016/j.joule.2018.10.019
Rajaeifar, M. A., Ghadimi, P., Raugei, M., Wu, Y., & Heidrich, O. (2022). Challenges and recent developments in supply and value chains of electric vehicle batteries: A sustainability perspective. Resources, Conservation and Recycling, 180, 106144. https://doi.org/10.1016/j.resconrec.2022.106144
Rosen, M. A. (2022). The circular economy and energy. In CSR, sustainability, ethics & governance (pp. 133-149).
Roy, J. J., Rarotra, S., Krikstolaityte, V., Zhuoran, K. W., Cindy, Y. D., Tan, X. Y., Carboni, M., Meyer, D., Yan, Q., & Srinivasan, M. (2021). Green recycling methods to treat lithium‐ion batteries E‐waste: A circular approach to sustainability. Advanced Materials, 34(25), 2103346. https://doi.org/10.1002/adma.202103346
Saw, L. H., Ye, Y., & Tay, A. A. (2016). Integration issues of lithium-ion battery into electric vehicles battery pack. Journal of Cleaner Production, 115, 1032–1045. https://doi.org/10.1016/j.jclepro.2015.12.107
Schröder, M., Iwasaki, F., & Kobayashi, H. (2021). Current situation of electric vehicles in ASEAN. Promotion of Electromobility in ASEAN: States, Carmakers, and International Production Networks. ERIA Research Project Report FY2021 (03), 1-32.
Spieske, A., Gebhardt, M., Kopyto, M., & Birkel, H. (2022). Improving resilience of the healthcare supply chain in a pandemic: Evidence from Europe during the COVID-19 crisis. Journal of Purchasing and Supply Management, 100748. https://doi.org/10.1016/j.pursup.2022.100748
Stampatori, D., Raimondi, P. P., & Noussan, M. (2020). Li-ion batteries: A review of a key technology for transport decarbonization. Energies, 13(10), 2638. https://doi.org/10.3390/en13102638
Swain, B. (2017). Recovery and recycling of lithium: A review. Separation and Purification Technology, 172, 388-403. https://doi.org/10.1016/j.seppur.2016.08.014
Tian, G., Yuan, G., Aleksandrov, A., Zhang, T., Li, Z., Fathollahi-Fard, A. M., & Ivanov, M. (2022). Recycling of spent lithium-ion batteries: A comprehensive review for identification of main challenges and future research trends. Sustainable Energy Technologies and Assessments, 53, 102447. https://doi.org/10.1016/j.seta.2022.102447
U.S. International Trade Commission. (n.d.). The supply chain for electric vehicle batteries. USITC. Retrieved August 26, 2022, from https://www.usitc.gov/staff_publications/jice/supply_chain_electric_vehicle_batteries
Van den Bossche, P., Vergels, F., Van Mierlo, J., Matheys, J., & Van Autenboer, W. (2006). SUBAT: An assessment of sustainable battery technology. Journal of Power Sources, 162(2), 913–919. https://doi.org/10.1016/j.jpowsour.2006.06.097
Vanhaverbeke, L., Schreurs, D., De Clerck, Q., Messagie, M., & Van Mierlo, J. (2017). Total cost of ownership of electric vehicles incorporating vehicle to grid technology. Twelfth International Conference on Ecological Vehicles and Renewable Energies (EVER).
Vimmerstedt, L., Ring, S., & Hammel, C. (1995). Current status of environmental, health, and safety issues of lithium-ion electric vehicle batteries.
Yang, Z., Huang, H., & Lin, F. (2022). Sustainable electric vehicle batteries for a sustainable world: Perspectives on battery cathodes, environment, supply chain, manufacturing, life cycle, and policy. Advanced Energy Materials, 12(7), 2200383. https://doi.org/10.1002/aenm.202200383
Zackrisson, M., Avellán, L., & Orlenius, J. (2010). Life cycle assessment of lithium-ion batteries for plug-in hybrid electric vehicles—Critical issues. Journal of Cleaner Production, 18(15), 1519–1529. https://doi.org/10.1016/j.jclepro.2010.04.017
Zhang, Q., Dou, Y., He, Q., Deng, S., Huang, Q., Huang, S., & Yang, Y. (2022). Emerging carbonyl polymers as sustainable electrode materials for lithium‐free metal‐ion batteries. Energy & Environmental Materials. https://doi.org/10.1002/eem2.1244
Zhang, Y., Rysiecki, L., Gong, Y., & Shi, Q. (2020). A SWOT analysis of the UK EV battery supply chain. Sustainability, 12(23), 9807. https://doi.org/10.3390/su12239807
Zou, H., Gratz, E., Apelian, D., & Wang, Y. (2013). A novel method to recycle mixed cathode materials for lithium-ion batteries. Green Chemistry, 15(5), 1183. https://doi.org/10.1039/c3gc00023a
Journal of Information Technology Management
Volume 17, Issue 1
2025
Pages 178-197

Files

Share

How to cite

Statistics