The rapid growth of electric vehicles in Canada is expected to generate significant volumes of end-of-life lithium-ion batteries, creating both environmental challenges and opportunities for circular resource management. This study develops an integrated Agent-Based Modeling framework to analyze the lithium-ion batteries lifecycle, including remanufacturing, second-life applications, and recycling within Canada’s electric vehicle ecosystem. Using electric vehicle and plug-in hybrid electric vehicle registration data from Statistics Canada (2017-2025), the model estimates future end-of-life battery generation and material flows. A state of health based cascading approach is applied, where batteries are directed to remanufacturing, second-life use, or recycling based on their remaining capacity. Recycling enables recovery of critical materials such as lithium, nickel, and cobalt, reducing reliance on virgin resource extraction. Environmental and socio-economic impacts are quantified through greenhouse gas emission reductions and green job creation. Results show that LIB recycling can significantly reduce greenhouse gas emissions while generating substantial employment opportunities. Policy scenario analysis, including baseline, Extended Producer Responsibility, and incentive-based systems, demonstrates that stronger policy interventions improve collection efficiency, recycling rates, and overall system performance, supporting circular economy development in Canada’s electric vehicle sector.
Sustainable Development and Green Job Creation in Canada’s EV Battery Recycling Sector
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