Effects of network structures on the production planning in closed-loop supply chains-A case study based analysis for lithium-ion batteries in Europe

The increasing demand for electric vehicles and related lithium-ion batteries leads to the implementation of battery production in Europe. Recently, legal obligations, high material prices, and supply risk of battery ma-terials induced OEMs to set up recycling facilities or cooperate with battery recyclers. Different network struc-tures emerged in this process. However, it remains unclear how the network structures influence the performance in the short-term. Therefore, a novel multi-stage, multi-product, multi-period production planning approach for closed-loop supply chains of lithium-ion batteries is developed. The model considers a spatial distribution of collection, recycling, repurposing, and production. Furthermore, the facilities of the OEM and suppliers a considered simultaneously. The collection is further divided into cost-free take-back of spent batteries and purchase of additional batteries. This approach enables the stakeholders of the closed-loop supply chain to counteract material shortages or price fluctuations. Subsequently, the effects of different network structures are analyzed based on a case study for closed-loop supply chains of lithium-ion batteries in Europe. The results indicate that centralized and decentralized networks can achieve adequate performance. In this context, the transformation toward closed-loop supply chains is beneficial for all network structures. Furthermore, circular factories outperform all network structures in the short term due to the in-house production of batteries and short transportation distances.