Circular Business Model for Vehicle Lead-Acid Batteries in Ethiopia

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Date

2023-10

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Publisher

Addis Ababa University

Abstract

The automotive battery industry is shifting towards sustainability, driven by the need for circular business models, particularly lead acid batteries (LABs). This transition presents unique challenges and opportunities for circular economy implementation. In developing countries like Ethiopia, the LAB industry faces sustainability issues and undercapacity utilization. This research aims to identify potential circular strategies, pinpoint the most influential factors affecting adopting of circular business model (CBM), and develop a CBM tailored for LABs to address sustainability challenges and promote circular practice in the automotive battery industry. The research employs a multi-faceted methodology including expert opinions, thematic analysis, hybrid Grey and Decision-Making Trial and Evaluation Laboratory (DEMATEL) analysis, and the Business Model Canvas framework. The study identifies and propose three promising circular economy strategies: repair for reuse, repurpose, and recycle which collectively provide substantial environmental and economic benefits by extending battery life, reducing resource consumption, and generating revenue. Further, the study identifies four key factors influencing the adoption of CBM for LABs by analyzing the dynamic interplay of 23 factors: lack of business model with take-back systems, high cost of handling and processing, lack of effective communication and coordination, and lack of supportive government policies. Finally, the study offers a practical roadmap for implementing circular practices by modeling identified circular strategies within the Circular Business Model Canvas framework. This research prioritizes environmental responsibility, resource efficiency, and economic viability, contributing to LAB sustainability and fostering an environmentally responsible automotive sector.

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Keywords

circular strategies, sustainability, adoption factors, circular economy

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