A Market for Trading Used Electric Vehicle Batteries - Theoretical Foundations and Information Systems

Various automotive companies have demonstrated that used electric vehicle batteries (EVBs), after having been removed from electric vehicles (EVs) due to insufficient capacity or power, can still be repurposed as energy storage for stationary applications. If predictions on the diffusion of EVs prove true, a large amount of used EVBs will be available for repurposing until the end of this decade. As yet, the fundamental economic properties of a market for used EVBs are unexplored. Additionally, the role of information systems as enablers for second life business models and tools for trading used EVBs has not been investigated. Inspired by seminal economic theories and based on reviewing the market for used automotive parts, we offer a first conceptualization of three forms such a market might take, along with their economic properties and stakeholders. We subject these market forms to a conceptual transaction cost analysis and an empirical inquiry based on semi-structured interviews. We find that a market for used EVBs will likely emerge as an intermediary-based market that is supported by automobile companies. Against this backdrop, decision support systems seem to be a more suitable class of information systems than electronic marketplaces to enable the trading of used EVBs.