94
M. Aurisicchio et al.
to the material supplier. This scenario is now explored using the case of energy storage
through lithium-ion batteries. A material supplier of lithium cobalt oxide (i.e. cathode
material) or lithium titanium oxide (i.e. anode material) offers to the producer of evehicle batteries the possibility to use its materials as a service. The material supplier
requests that its materials are used on standardised battery designs, which follow
predetermined design for disassembly rules. The material supplier also requests that
the materials are returned at the end of the contract stipulated with the producer.
After entering this contractual agreement, the producer manufactures battery cells,
modules and packs for e-vehicle applications thinking carefully about the life of its
battery products. The battery producer, conscious of the requirement to return the
batteries to the material supplier, offers the batteries to manufacturers and consumers
of e-vehicles as a product-service system. This means that consumers lease batteries
from the producer and have a requirement to return them to the producer at the end of
life as they have to be returned to the material supplier. Depending on the contractual
agreement with the material supplier, the producer could decide to keep the batteries
longer before returning them to the material supplier for recycling. For instance,
the producer could repurpose the batteries for less energy intensive applications or
operate a refurbishment service and offer them for appropriate applications.
7.4.2 Independent Use of a MSS
A MSS can also be operated independently of a PSS, see Fig. 7.1b. In this scenario
the material supplier markets materials as a service to a producer, and the producer
markets products to consumers. Consumers, however, have an obligation to return
obsolete products to the material supplier. This scenario is now explored using
the case of energy storage through lithium-ion batteries. A material supplier sells
lithium cobalt oxide or lithium titanium oxide to a producer to manufacture batteries
for e-vehicles. The battery producer then markets batteries to manufacturers and
consumers of e-vehicles with an obligation to return them to the material supplier
at the end of life. The collection or take-back service is, however, offered by the
material supplier. In this scenario the battery producer is free from the responsibility
to recollect obsolete batteries as this is transferred to the material supplier.
7.4.3 Expected Benefits to the Whole System
Leaving the ownership of resources at the top of the supply chain, MSSs have the
potential to allow suppliers to exert more control on the flow of resources and consequently to use resources more efficiently (Allwood et al. 2011), for example, by
collaborating closely with collectors, recoverers and recyclers. Specifically, MSSs
would allow to reduce the dependency on virgin resources and permit to bring to life
the concept of pure and closed resource flows, i.e. less contamination.
M. Aurisicchio et al.
to the material supplier. This scenario is now explored using the case of energy storage
through lithium-ion batteries. A material supplier of lithium cobalt oxide (i.e. cathode
material) or lithium titanium oxide (i.e. anode material) offers to the producer of evehicle batteries the possibility to use its materials as a service. The material supplier
requests that its materials are used on standardised battery designs, which follow
predetermined design for disassembly rules. The material supplier also requests that
the materials are returned at the end of the contract stipulated with the producer.
After entering this contractual agreement, the producer manufactures battery cells,
modules and packs for e-vehicle applications thinking carefully about the life of its
battery products. The battery producer, conscious of the requirement to return the
batteries to the material supplier, offers the batteries to manufacturers and consumers
of e-vehicles as a product-service system. This means that consumers lease batteries
from the producer and have a requirement to return them to the producer at the end of
life as they have to be returned to the material supplier. Depending on the contractual
agreement with the material supplier, the producer could decide to keep the batteries
longer before returning them to the material supplier for recycling. For instance,
the producer could repurpose the batteries for less energy intensive applications or
operate a refurbishment service and offer them for appropriate applications.
7.4.2 Independent Use of a MSS
A MSS can also be operated independently of a PSS, see Fig. 7.1b. In this scenario
the material supplier markets materials as a service to a producer, and the producer
markets products to consumers. Consumers, however, have an obligation to return
obsolete products to the material supplier. This scenario is now explored using
the case of energy storage through lithium-ion batteries. A material supplier sells
lithium cobalt oxide or lithium titanium oxide to a producer to manufacture batteries
for e-vehicles. The battery producer then markets batteries to manufacturers and
consumers of e-vehicles with an obligation to return them to the material supplier
at the end of life. The collection or take-back service is, however, offered by the
material supplier. In this scenario the battery producer is free from the responsibility
to recollect obsolete batteries as this is transferred to the material supplier.
7.4.3 Expected Benefits to the Whole System
Leaving the ownership of resources at the top of the supply chain, MSSs have the
potential to allow suppliers to exert more control on the flow of resources and consequently to use resources more efficiently (Allwood et al. 2011), for example, by
collaborating closely with collectors, recoverers and recyclers. Specifically, MSSs
would allow to reduce the dependency on virgin resources and permit to bring to life
the concept of pure and closed resource flows, i.e. less contamination.