Limited availability and high cost of critical raw materials obstruct the transition to electric vehicles, which is required for a green transition in mobility. Transactional ownership and limited tracking of materials in the supply chain is an obstacle we propose to overcome based on the technology of digital counterparts. Digital counterparts of vehicle modules and components provide the platform for circular operations, allowing for ‘life-cycle ownership’ of critical raw materials, enabling purposeful recovery and reuse, as well as sustainable changes in products-in-use. In the model for circular operations proposed in this paper, critical raw materials are used effectively for mobility, while the total cost of ownership for electric vehicles is reduced. Moreover, we highlight the need to identify and propose necessary changes in the regulatory frameworks to enable this proposed transition.
Paper presented at 29th International EurOMA Conference 2022 – European Operations Management Association EurOMA, Berlin, Germany.
Conference presentation and full paper available by request.