Regulatory frameworks and economic instruments for promoting a circular economy in electric vehicle battery and material supply chains

¹ Department of Electrical and Electronics Engineering, Accra Technical University, Accra, Ghana
² Department of Data Science and Analytics, Thrive Africa, Accra, Ghana
³ Department of Building Technology, Accra Technical University, Accra, Ghana
⁴ Department of Mechanical Engineering, Accra Technical University, Accra, Ghana

^* Corresponding author: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract

Global electric vehicle (EV) battery supply chains are predominantly linear, as end-of-life lithium-ion batteries lack formal recycling. This paper explores how regulatory frameworks and economic tools can accelerate the transition of EV battery and critical mineral supply chains into a circular economy. A document-based, qualitative design approach was used, including lifecycle regulatory analysis, cost-revenue feasibility modelling, comparative policy benchmarking, and structured interviews with ten sector-specialist informants across four jurisdictions: the European Union, China, South Korea, and the United States. The results showed that producer responsibility systems with long-term producer liability have a greater investment effect than collective ones. Hydrometallurgical recycling is economically viable at a price of Lithium carbonate above $18,000 per tonne, but with a combination of policy initiatives, this drops to $ 9,000 per tonne. Green procurement specifications changed supplier behaviour, with certified suppliers showing evidence of 15–25% increases in volumes of public contracts. This research bridges a critical gap between regulatory analysis and commercial feasibility and identifies the integration of emerging economies into circular battery governance as an under-researched academic priority.