The notion of the circular economy (CE) has recently been put forth as a strategy to mitigate climate change. It has gained attention in policy circles and in the engineering and natural science literature. In contrast to the linear model of production, use and disposal, the point of departure for the CE is the creation and sustention of a regenerative system with the goal of minimising resource inputs and emissions. However, although the emerging literature has discussed the ongoing transition process towards the CE, mainly from an ecological perspective, the underlying mechanisms of industrial change including structural tensions have not been discussed. Responding to this gap in the literature, the aim of this paper is to discuss CE as an evolutionary process and to propose a conceptual framework that builds on a development block approach.

The circular economy (CE) has recently gained attention as a key transformative strategy. However, as with previous transformation processes, the transition towards the CE is not a smooth process since there are underlying structural tensions in incumbent systems that need to be overcome. One industry that is currently undergoing transformative pressure is the automobile industry where the transition to electric vehicles that use lithium-ion bat- teries is creating structural tensions. In this paper, we adopt a multi-actor perspective and analyze the strategies that different actors pursue to manage the structural tensions that are induced by the transition towards lithium-ion batteries with the goal of creating and sus- taining a closed-loop supply chain (CLSC) model. Through a case study of the key actors (mining firms, material manufacturers, vehicle manufacturers, and recyclers), we reveal the particularities of managing structural tensions which are influenced by temporal, spatial, and contextual factors. We demonstrate our claim by first expanding the application bound- ary of the concept of structural tensions to show the interconnection between strategic choices made by actors at operational and technological levels; and second, unfolding the dynamics of managing structural tensions in the CE transitions from a multi-actor perspec- tive. The results of this study may support industrial actors to achieve a better understand- ing of the consequences of their short- and long-term CE transition strategies, and resolve conflicts in visions and priorities during the transition process.

An increasing body of literature on sustainability transitions addresses the business strategies of incumbents but overlooks upstream companies. By addressing this gap, we aim to explore how upstream incumbents navigate sustainability transitions. Theoretically, we introduce an industry value chain perspective, integrating the concepts of center of gravity, patterns of strategic change and organizational adaptation. Empirically, we conduct an in-depth case study of how an up- stream incumbent firm navigates the established value chain for lead-acid batteries and the emerging value chain for lithium-ion batteries used in electric vehicles. The company faces a dilemma as to whether and how to maintain a vertically integrated position in the established value chain, and how and when to expand into the emerging value chain. We argue and demonstrate that for upstream companies, navigating sustainability transitions is highly dependent on the anticipation of and adaptation to the complex changes in industry value chains.

This study advocates the importance of taking an evolutionary perspective in the strategic development of Closed-Loop Supply Chains (CLSC) in the transition to a circular economy. Building on the supply chain management and industrial dynamics knowledge domains, an evolutionary analytical framework was developed and applied in the empirical context of the ongoing industrial transition to e-mobility. This study is designed as an in-depth exploratory case study to capture the multi-layer dynamic complexities and their interplay in CSLC development. The empirical investigation was based on two-year interactions between the authors and various departments in a leading European EV manufacturer. The proposed evolutionary analytical framework was used for investigating the dynamics of four CLSC configurations through ten possible pathways. The findings demonstrate that the evolution of each CLSC configuration comes with multiple challenges and requirements and point out the necessity for the co-development of technologies, product design and production, and infrastructure through long-term relationships among key supply chain actors. However, this evolutionary journey is associated with multiple dilemmas caused by uncertainties in the market and technology developments. All these factors were properly captured and critically analyzed, along with their interactions, thanks to the constructs included in the proposed evolutionary analytical framework. The analysis was conducted from the perspective of the OEM only. Thus, the framework does not directly tackle the dynamics and effects of other supply chain actors´ actions. The results are context specific (e.g., types of CLSC configurations and pathways). The developed framework can support SC managers in identifying, framing, and comparing alternative strategies for CLSC configuration in the transition process. The study brings together the dynamics of the external environment (technology and market development) and concepts of complementarities, path-dependencies, and lock-ins that together unfold the dynamics and evolutionary pathways that firms may take in their transition to CLSC.

Electrification of transportation is widely recognized as an enabler of sustainable development thanks to its potential to mitigate current global warming crisis. So far, industry has been focusing on technology deployment and scaling up, paying limited attention to the end-of-life of new vehicles and their components. However, if this emerging technology is to be truly sustainable in the long range, proactive planning and development of product and material recovery solutions is crucial from many perspectives. Reverse supply chain design is subject to deep uncertainties and simulation has been already used in literature as a suitable tool for examining alternative configurations and the key drivers of optimal design. This study aims to investigate the implications of different structural (centralized vs decentralized) and operational (in-house and outsourcing) configurations of the reverse supply chain configuration of high voltage li-ion batteries for heavy e-vehicles. All the stages in the reverse supply chain, i.e. acquisition of returned batteries, inspection, reconditioning (remanufacturing or recycling), warehousing and transportation, repurposing for second-life applications are considered. A Mixed Integer Linear Programming (MILP) model is finally proposed to support strategic and tactical decisions of an OEM (original equipment manufacturer) according to efficiency and circularity objectives. Results provide valuable ground for decision-making regarding the development of reverse supply chain systems of high voltage batteries and demonstrate that such systems can offer economic benefits for vehicle manufacturers.

This study explores the dynamics of competition among actors over unlocking business values of the end-of-life electric vehicle battery and its impacts on the successful implementation of circular economy principles. It examines a system dynamics model of the tragedy of commons known as commons dilemmas to present the result of actors’ competition. The system dynamics modelling technique is used to model the dynamics of competition among three actors, lithium-ion battery producer, EV manufacturer and lithium-ion battery recycler, over unlocking business values of end-of-life batteries. The causal loop diagrams are related to three main feedback loops. i) the dynamics of each actor’s business activities (including cost & benefit analysis), ii) their strategies related to EVB end-of-life management, iii) and the competition to keep the end-of-life batteries within their loop. The analysis of system dynamic causal loops indicates that there are different reinforcement loops of bounded rationalities and balancing loops of globally rationality of actors. For instance, competition over having access to EOL returned EVBs could delay and change the focus on specific EOL management over another.