Alkaline Batteries: The Challenge of Circularity
-Myth or Method-
(Escosectores, 2017)
Interdisciplinary Projects Instructors
Daan Disco (10986588) dr. M.D. Davidson
Mees Eringa (11025395) D. Danesh
Lukas Struiksma (10762035) Date
Index
Abstract 1. Introduction
2. Theoretical Framework
2.1. Circularity
2.2. Closed Loop Supply Chain Management 2.3. Resource Based View
3. Problem Definition 4. Method
4.1. Interdisciplinary Integration 4.2. Selected Methods and Data
5. Results
5.1. Subquestion 1: How feasible is the manufacturing process of circular batteries?
5.1.1. Introduction
5.1.2. Pyrometallurgical processes 5.1.3. Hydrometallurgical processes 5.1.4. Conclusion
5.2. Subquestion 2: How feasible are the logistics required to achieve a circular ABP process?
5.2.1. Achieving Closed Loop Supply Chain 5.2.2. Incentives for Collection
5.3. Subquestion 3: How feasible is the implementation of circular batteries regarding business strategies
6. Conclusion
6.1. Conclusion
6.2. Discussion & Recommendations
Abstract
Because of finite resources and a linear consumption method, alternative methods such as the circular economy should be researched and could be implemented. This paper researches the feasibility of circularity within the industry of alkaline batteries. In order to do so, first a
chemistry approach will be used by taking a look at the physical resources necessary to construct a battery. Secondly, the logistics of a closed loop supply chain will be researched. Finally, a business perspective will be used to analyze human influence on circularity. By integrating these disciplines into a interdisciplinary paper, it can be concluded that without major change in the current system circularity within the alkaline battery industry is not feasible. However, with adjustments, circularity could be the future of the alkaline battery production.
1. Introduction
As a result of a rising world population, increasing living standards across the world and an adoption of neoliberal policies by most Western governments, consumption has reached an all time high (Murray et al., 2017) . Since resources on Earth are limited, continued exponential economic growth and the resulting consumption will end up to be unsustainable in their current fashion (Meadows et al., 1972) . Industries in our economy are extracting raw materials to use for the manufacturing of our daily products. After manufacturing, the products are sold to consumers who eventually discard the products, with little consciousness about the subsequent effects on the environment. In 2010, almost 65 billion tonnes of raw materials entered the economy, whilst this is expected to grow to 82 billion tonnes of raw materials in 2020 (MacArthur, 2013). This linear consumption could be disastrous for companies and the environment in the future, as raw materials will become more expensive over time and natural resource depletion will occur (MacArthur, 2013). To counter this, alternative methods to the conventional production chains need to be evaluated and assessed on their feasibility. An alternative which has recently been gaining more ground is that of the so-called circular economy (Lieder & Rashid, 2016).
One industry that has grown exponentially in the last several decades is the battery sector (Salgado et al., 2003) . With the prevalence of consumer electronics, more batteries are being produced each year - the majority of which are non-rechargeable, disposable batteries (Salgado et al., 2003). The current large scale mining operations to provide the battery industry with raw resources are responsible for heavy metal pollution in the environment, endangering the health of people living in these areas (Chen et al., 2014) . Because of the growth this sector experiences and the dangers it poses, this paper will focus on the feasibility of applying a circular production cycle to the battery industry. Since there are a large amount of different battery sorts and batteries vary wildly between these sorts in chemical buildup and longevity, the paper will specifically target alkaline battery production (ABP). This leads to the following research question: How feasible is the production of circular alkaline batteries within the current battery manufacturing industry?
Moreover due to the complexity of large scale business systems like this and the presence of both logistical, business-related and technical difficulties, the paper will provide an interdisciplinary approach on the subject. This is done by drawing up an altered version of the Resource Based View (RBV) which is an important pillar of strategic management theory. The RBV imagines a company or industry as a collection of three distinct resources: human, intangible and tangible resources. Also supporting organizational capabilities, more specifically in this paper organizational logistics, determine to a great extent how these resources are exploited and maximized.
First of all, the feasibility of recycling processes will be assessed through a chemistry-based lense - taking into account the tangible or physical resources. After this, the feasibility of the logistics required for circular ABP will be determined. This is done by researching the possibilities of achieving a closed loop supply system and assessing incentives to increase battery collection after they have been used by consumers - setting up the required organizational logistics to support the rest of the cycle. Finally, the feasibility of circular APB within the current business environment will be researched from a business perspective. This facet of the research will deal with the influence of human and intangible resources on the prospect of circularity.
2. Theoretical Framework
2.1 Circularity
In response of the previously mentioned rise in consumption and decrease of natural resources, both governmental and private parties have started to look into alternatives for the current situation. Nations from across the world have voiced their concerns at several UN meetings, since they believe the corporate world will not be likely to change their ways as they perceive large scale change as a threat to economic growth (Banerjee, 2012). However, companies themselves may end up in a situation of hefty competition for access to scarce and critical resources, a development which has slowly caused companies to look for alternative business models to decrease this threat (Catinat, 2010). As a way to get around the limitations of the currently prevalent linear economy, the concept of a circular economy is beginning to win more ground in academic and corporate sphere (Lieder & Rashid, 2016).
A circular economy, in the broadest sense, can be defined as an economy which balances economic growth with the protection of both resources and the environment in general (UNEP, 2016). However, the stricter definition used in this paper requires the circular economy to also exhibit traits of a closed-loop economy where, after use, organic compounds can re-enter the biosphere safely and non-organic compounds circulate at a high quality without entering the biosphere (Murray et al., 2017) . This means that materials do not degrade in quality after recycling and can therefore still be used to manufacture a new version of the spent product, a process called “upcycling”(Steinhilper & Hieber, 2001) . An even stricter definition also requires products to be completely “designed to be re-designed”, meaning that products are designed in such a way that waste is completely minimized during the recycling process (Murray et al., 2017).
Consumption of electronics has a significant positive relationship regarding rising living standards (Schor, 2005) and non-rechargeable alkaline batteries are still widely prevalent in the modern world (Salgado et al., 2003) . Therefore, the alkaline battery industry shows a dire need to make the change from linear economy to circular economy. To fully make the production chain circular, no new resources should be needed to maintain a similar stock of batteries throughout the years. The concepts of “designed to be re-designed” is not delved upon in the paper due to the fact that a redesigned alkaline battery which leads to no waste is still completely hypothetical. To see how close the battery industry can come to the ideal of a circular economy, this paper will look at opportunities and challenges in the fields of logistics, business and manufacturing and determine how feasible the application of more circular systems in these disciplines will turn out to be.
2.2 Closed Loop Supply Chain Management
Supply Chain Management (SCM) originates from the manufacturing industry and was part of the Toyota production system (Shingo, 1988). SCM has been defined as ‘the network of organizations that are involved, through upstream and downstream linkages, in different processes and activities, thus producing value in the form of products, services and ultimately customer value (Christopher, 1992). As such, SCM focuses on control over the whole chain instead of control over independent stages, by independent actors (Koskela, 1992).
In this sense the material flow can be viewed upon as the forward supply chain and the information flow as the reverse logistics (fig. 1). Recently, this strategy has been enhanced by
tasks such as maintenance or product recovery and thus contributing to the shift of the traditional supply chain to closed-loop supply chains. (Schultmann et al., 2006) . Decisions taken by actors can have significant changes for the battery industry (Christopher, 2016). Important decisions within the battery supply chain are, design, source, make, deliver and return.
Moreover, the suppliers are the first step in the supply chain of the battery industry. They deliver the materials, which mainly are exploited resources, to manufacture the parts (Christopher, 2016). As was shown in the previous part, the major share of recycled materials are manganese, zinc and potassium. Also, in line with the suppliers are the manufacturers and the assemblers. This is an important part for the design and the construction of the product (Christopher, 2016). Companies are searching for ways to reduce the amount of materials used in products (Christopher, 2016). Besides, the choice of materials is also important for potential remanufacturing, refurbishing and recycling. This means that the design of the product is developed for technological, and biological cycle and easy dis- and reassembly (Bocken et al., 2016). By-products could be exchanged with other companies to endure their lifetime (Geng & Doberstein, 2008). Finally, the end of the chain is represented by the retailers and customers. Retailers and assemblers are mainly responsible for the acts of consumers, also called the reverse logistics (Christopher, 2016).
The previous part shows the need for a more coherent network in supply chains and the battery supply chain in this case. The world is facing a major problem when it comes to resource scarcities (MacArthur, 2013). Insight into the dynamics of SCM could provide a prominent solution since a lot of these problems could be solved with little changes in different parts of supply chains, although there are some major obstacles which could complicate this process.
Figure 1: This figure shows a supply chain with different flows, the information flow and the material flow. Bron: Vrijhoef & Koskela, 2000.
To be able to measure the feasibility of circular batteries within the current ABP industry, a framework must be used which encapsulates the dynamics of all actors and processes. In this paper, the resource-based view (RBV) of organizations will be used to analyze the current ABP industry and measure the feasibility of circular batteries within this industry. Moreover, the RBV of organizations has become one of the most influential theories within strategic management theorizing (Kraaijenbrink, Spender & Groen, 2010).
Also, another alternative method to analyze industry dynamics the RBV is the five forces of competition framework by Porter (Grant, 2016). While the RBV of firms focusses on internal aspects as a source of competitive advantage, the model of Porter focuses on external forces shaping the industry. Complications arise with the use of Porter’s model, as many critics have pointed out that an internal focus on strategy is of essence because the external environment of industries have become extremely volatile undergoing pressure from globalization and new technology (Grant, 2016).
The RBV suggests that organizations are a collection of resources and capabilities and that these form the basis for competitive advantage. Grant (2016) describes competitive advantage as a situation in which two or more firms that compete within the same market, where one firm possesses a competitive advantage over its rival when it earns a persistently higher rate of profit. Resources are the productive tangible, intangible and human assets owned by organizations (Grant, 2016). Capabilities also referred to as organizational capabilities, determine how organizations exploit these resources to perform tasks and function (Grant, 2016). Achieving a circular battery production chain will have major implications on the tangible- intangible- and human resources and capabilities of organizations. This paper will investigate the major challenges and opportunities of achieving a circular ABP chain, whilst applying the knowledge of all disciplines to the theoretical framework of the RBV.
Moreover, tangible resources are the financial resources and physical assets of a firm, such as material use and machinery (Grant, 2013). Producing circular batteries and applying closed loop chains will allow companies to recapture and reuse materials classified as output waste and thus turn a cost centre into a profitable business (Nidumolu, Prahalad & Rangaswami, 2009; Lieder & Rashid, 2016) . Organizing a circular alkaline battery production chain could also result in changes within the human and intangible assets of firms. The intangible resources of firms include those factors that are non-physical in nature and are rarely included in the firm’s balance sheet(Galbreath, 2005). Additionally, these resources contain intellectual property assets such as patents and exclusive certification marks, organizational assets such as organizational culture and reputational assets (Surroca, Tribó & Waddock, 2010) . Furthermore, achieving circularity within organizations could impact a company’s human resources, which comprise the skills and productive effort offered by an organization’s employees (Grant, 2013). The RBV of organizations advocates that the proficient application of organizational capabilities, also known as bundles of skills and accumulated knowledge exercised through organizational routines, maximize an organization's resources use (Galbreath, 2005). Applying circular alkaline battery production methods may require an adjustment in these organizational capabilities and this will be investigated in section 4.2.
Finally, the theoretical framework of the RBV provided by Grant (2016) in figure 2 will be applied and moderated to assess the feasibility of circular ABP within the current ABP industry. Moreover in the bottom illustration in figure 2 the dynamics within the production process of alkaline batteries has been divided into three sections. Namely into the required
organizational resources needed to produce these batteries and more specifically, the recycling industry and closed loop supply chain system. Furthermore into the Intangible and human resources of battery producing firms and the tangible resources of firms such as the physical manufacturing process of alkaline batteries. An in depth analysis of the ABP process using this framework will allow the integration of knowledge of diverse disciplines throughout different sections and thus the challenges and opportunities of achieving a circular ABP industry will become evident. The moderated illustration also indicates that within this case study the only the dynamics regarding resources and capabilities will be investigating, whilst the assessment of firm specific competitive advantage will remain slightly outside the scope of this paper.
Figure 2: The top illustration, provided by Grant (2016), is based on the RBV on organizations. In the bottom figure,
moderations have been made to illustrates the appropriate theoretical framework within this case study. The recycling industry
and closed loop supply chain process, can be understood as outcomes of organizational logistics. The manufacturing process is part of the tangible resources. Whilst focussing on intangible and human resources, a view will be built upon methods of CSR.
This framework will provide insight into whether achieve a circular ABP industry is feasible (Provided by: Grant, 2016, pag.
3. Problem Definition
The theoretical framework gave insight into many theories within the different disciplines contemplating on the idea of circularity within the industry of alkaline batteries. From different disciplines the matter has been studies, but never there has been a interdisciplinary research conducted which combined the views of different disciplines in order to understand how feasible circularity is within the ABP. This is of importance as it could bring insight into how a closed loop would really behave. Also, the different disciplines can enhance each other, but could also spark discussion and therefore could lead to a more elaborate research and more elaborate conclusions on the matter.
In the theoretical framework it is evident that the disciplines earth sciences, spatial planning and business are well equipped to research the feasibility of a circular alkaline battery. The research question therefore is: “How feasible is the production of circular alkaline batteries within the current battery manufacturing industry?”. The objective within this research is also to give recommendations on how particular parts of closing the cycle with the ABP can be improved. However, research of this kind is complex. The next paragraph will explain why most questions and issues surrounding socio-economic research are complex and how this is evident in the case of researching the feasibility of circularity within the ABP.
Complexity is apparent in many socio-economic issues because of the many actors, many factors that play a role, the different scales and the differences in agreement on solutions. These problems are called wicked problems and are not easy to solve.
In the case of circularity of ABP complexity is also evident because of the many actors that play a role in creating a circular loop. Also these actors have to work together in order to achieve such a new economic system. The diversity of actors and the connections these actors possess and enact upon make it difficult to achieve emergence into a new system (from linear to closed loop).
Researching the feasibility of a closed loop system is intervening with the linear production methods and therefore also with the current day economic system. This economic system has a close relation to the ecological systems as the economic system is provided by the ecological system through resources. Our research tries to better the ecological system by changing the economic system but, the link between two broad systems like these can also be called complex.
The conducted research is therefore complex on two levels. First on the closed loop supply chain where many actors with many diverting views and connections play a role. The second form of complexity arises in the broader themes of the economic and ecologic systems that interact. In order to understand these complex systems, mono disciplinary research will not suffice. Therefore integrated and interdisciplinary research should be conducted (Menken & Keestra, 2016).
4. Methodology
4.1 Interdisciplinary integration
This paragraph will focus on the integration of the disciplines earth sciences, spatial planning and business in order to understand how these disciplines came together in order to conduct research on the circularity of alkaline batteries.
The different disciplines are combined in different ways. The first is through the RBV framework which has been adjusted for this research in section 2.3. The adjusted RBV framework can be found in figure 2. A reorientation of the RBV framework was chosen because the RBV provided us with a framework that connected all disciplines. However, it was in no condition to answer the research question. With the extensification of the terms: intangible, tangible and organizational logistics, the concepts of other disciplines could be combined which led to a reorganization of the framework itself.
The adjusted RBV framework can be seen as the theoretical framework of this paper, and will therefore mainly be used in order to understand how the different theories of the disciplines come together and how the research question can be answered through these disciplines.
However, a second diagram is created to understand how the different disciplines come together when analysing a closed loop system (see figure 3). In this diagram a schematic representation of how a current day closed loop chain in the ABP could look, this is done by organizing the different disciplines within circular ABP. Once this was analyzed it became clear that the disciplines could build on each other as every discipline researched a different part of the closed loop. Within this diagram, the blue boxes represent the actors in play. The orange boxes represent the different disciplines and what part of the process it researches. The different colours in arrows display how well that part of the circular ABP works in the current system.
4.2 Selected Methods and Data
The provision to answer the sub-questions and eventually the research question is mainly done by literature research. The integrated theoretical framework is the basis for the overall project. This theoretical framework is provided by every discipline in the form of literature research. The concept of literature research is reviewing and analyzing other papers to come up with knowledge and arguments about the topic of interest. This is then transferred in the form of a literature research. The literature research has been provided by primary data, which eventually became secondary data in the form of our literature reports. The use of primary data and the literature research was extensive enough to provide answers to the main research question.
5. Results
In this section, the theoretical framework of the RBV of strategic management provided in Figure X will be applied to the three sub questions. Throughout each sub question, results has been collected by extensive literature review and these sources provide extensive research. All sources and research findings have been critically reflected upon.
5.1 Subquestion 1: How feasible is the manufacturing process of circular batteries?
5.1.1. Introduction
A key role in the establishment of a circular ABP chain is given to recycling companies. Ever since more stringent regulation on battery disposal came about during the last two and a half decades, numerous methods have been developed to increase the amount of materials that can be won back and reused in battery manufacturing processes (Veloso et al., 2005) . This eases the strain on limited resource pools, decreases the previously mentioned pollution of the current system and may prove to be even more cost-effective when resources deplete to an even higher level of scarcity (Sayilgan et al., 2009) . In the following paragraph, several promising recycling processes will be assessed and reflected upon.
Recycling processes for spent alkaline batteries generally follow the same sequential steps as a form of pre-treatment: sorting, dismantling and grinding. Sorting is required due to the non-specific way batteries are collected: while the chemical makeup of different batteries shows a wide variety and thus requires different recycling processes, the mix that arrives at recycling plants consists of multiple battery types. The seperation occurs through both manual and mechanical means (Bernardes et al., 2003) . After sorting, the batteries are dismantled and materials like paper, plastic and unusable metal scraps are seperated (Veloso et al., 2005) . What follows is a black powder with the following contents:
Figure 4: The contents of the powder derived from alkaline batteries
The resulting mix then enters a ball mill to be ground down. This step is necessary to increase the surface area - increasing the potency of the reactions to come (Veloso et al., 2005) . However, operating the ball mill is an expensive part of the recycling process, and further experimental data is needed to determine the optimal running time to be both cost-effective and effective at grinding (Veloso et al., 2005) . The dismantling stage results in a fine black powder with the same chemical composition as the original mix. After these steps, the processes start to differ quite a lot.
5.1.2. Pyrometallurgical processes
Pyrometallurgical processes are the most frequently used method in the industry due to their simplicity and high yield(Salgado et al., 2003) . These recycling processes involve the selective heating of the powder to volatise distinct metals in the mix, making use of their individual volatilisation point. For alkaline batteries, the BATREC method is most commonly used (Salgado et al., 2003) .Salgado et al. (2003) explain the method as follow: the powder is heated to 1500 degrees Celsius, after which the zinc in the mix becomes gaseous. This metal is then condensed, effectively separating it from the rest of the powder. The BATREC method only separates zinc from the mix, requires high amounts of energy and discharges toxic gases that need to be scrubbed from the air by filtration systems (Salgado et al., 2003) . Benefits to the method is that dismantling of batteries is unnecessary and the method delivers high yields compared to other methods - up to 99.5 % of all zinc (Salgado et al., 2003).
5.1.3. Hydrometallurgical processes
Hydrometallurgical processes are a rapidly growing field in battery recycling, due to their high adaptability, low costs and less toxic emissions when compared to other methods (Veloso et al., 2005). These methods work by dissolving the powder into an aqueous mix, after which the metals are selectively leached by addition of various chemicals. In the most promising procedure, established by Veloso et al. (2005), the reaction sequence is as follows:
Figure 5: The hydrometallurgical route used to separate manganese, zinc and potassium from the battery powder (Provided by: Veloso et al., 2005).
Addition of water in the first step removes the potassium oxides from the powder, since that is the only metal which precipitates in water. Sulfuric acid then allows for regulation of the pH-value of the mix. Since manganese oxides and zinc oxides precipitate at different pH-levels, the two metals can be separated from the mix. These precipitated metal oxides can then be smelted back and used again in the production cycle. Precipitation can be done in either one single procedure for both manganese and zinc simultaneously or one procedure for each metal, the latter delivering a higher yield but costing significantly more time and money. Further experimental data is needed to determine which of these is optimal for cost-effectiveness. Benefits of this hydrometallurgical route are low running costs, the reduction of harmful gases produced during the procedure and the easy alteration of the procedure if companies need to precipitate metals other than zinc, manganese and potassium (Veloso et al., 2005) . Downsides are the large quantities of chemicals used in the process and the significant amount of time the process takes (Veloso et al., 2005).
5.1.4. Conclusion
Both recycling processes contain their own distinct benefits and downsides. However, for the purpose of recycling alkaline batteries in specific, the hydrometallurgical route seems to be more promising for the future. It is cheaper and therefore more attractive for the recycling company to use and while the yields are lower than those of the pyrometallurgical routes, this method enables us to separate and recycle more metal types (Veloso et al., 2005). In an optimal scenario,
however, both methods would be used to complement each other to separate and recycle as much as metal as possible.
5.2 Subquestion 2: How feasible are the logistics required to achieve a circular ABP process? 5.2.1 Achieving Closed Loop Supply Chain
Several studies show that even though companies implement SCM, it is not always been proven to be successful. The immense complexity of integrating SCM has led to uncertainty amongst several companies’ chains, which influences the overall performance of SCM (Pishavee & Torabi, 2010). Besides, in order to create a closed-loop supply chain a lot of extra complexities are added.
To construct a proper closed-loop supply chain for batteries would not be a problem, but to eventually make it reality is a lot harder (Zhou et al, 2007) . In the case of China, reality has shown that a lack of return yields, financial benefits and government support makes it only possible for some advanced facilities to achieve a closed-loop supply chain (Zhou et al, 2007).
After establishment of a closed-loop supply chain, battery returns are a big part of closed-loop SCM, as it requires a lot of logistics concerning the return and reuse of products during the production design(Guide et al., 2003) . An obstacle formed with these logistics, is the uncertain balance between demands and returned products. The uncertain timing of quantity of returned products is a reason for this fluctuating balance (Guide et al., 2003) . This could lead to shortages and surpluses in demand. Besides, the returns have to be disassembled before a measure of quantity can be made (Guide et al., 2003) . This also depends on the quality of the returned batteries, which determine the amount of materials recovered from the batteries (Guide et al., 2003). Variable process times could delay other parts. In other words, even if companies achieve to establish a closed-loop supply chain, a lot of conflicts seem to appear.
Material planning is one of the most important issues towards a closed-loop supply chain for batteries. Clearly communication has an important role in this case, as insufficient/missing communication in the supply chain has been seen as one of the main barriers (Seuring & Müller, 2008).
Integration can happen on multiple levels, with different scales. Some companies or products chains tend to aim at customers, others at suppliers (Frohlich & Westbrook, 2001) . Which direction and to which extent, can be described in the arc of integration (fig. 2). A narrow arc of integration means little to no integration with other actors of the battery supply chain. Broader arcs tend to integrate more actors and sections of the material flow chain. Studies suggest that broader arcs have more potential benefits compared to small arcs (Frohlich & Westbrook, 2001). Measurements of integration are made to measure the potential integration of certain activities (Frohlich & Westbrook, 2001) . This is operationalized by eight kinds of activities; access to planning systems, sharing production plans, joint access/networks, knowledge of levels, packaging customization, delivery frequencies, common logistical equipment and common use of third-party logistics (Frohlich & Westbrook, 2001) . These activities are then measured at a scale from none (0) to extensive (5). Single factors are converted from these measurements, which gives a prediction for the potential integrations towards customers or suppliers (Frohlich & Westbrook, 2001).
A study done by Jun et al. (2007), has shown a strategy for integration of a closed-loop supply chain, mainly assisted with technology. The strategy is based on three organizations, an agent, a system and a product. The agent gathers information about the every part of the material flow chain, and converts this into the system. This system then, provides all the information
needed by different actors within the material flow chain, which enables improvements in, for example, design, return or demands (Jun et al., 2007) . As an example, the first stage of the material flow chain is the production and design of the product. Information could be used for a balance between lifecycle requirements and conceptual design, which extends life spans of certain materials(Jun et al., 2007) . Real-time production information is a great way of managing production planning. It keeps updating information about, for example, sales of products or information about returned products(Jun et al., 2007) . This strategy could be seen as a broad arc of integration, integrating suppliers as customers as well.
The scale of integration of a closed-loop supply chain is for battery company different. It is important for companies to recognize in which way they could integrate certain activities.
Figure 7 : Arc of integration. A broad Arc of Integration contains more integration within a supply chain. Provided
by Frohlich & Westbrook, 2003.
5.2.2 Incentives for Collection
This section will focus on one part of the organizational logistics that is necessary for a closed loop supply chain in the industry of alkaline batteries. Collection batteries is of enormous importance when trying to close the loop, as the batteries would otherwise be lost and would end up in landfills (Bernardes et al., 2004).
However, the collection of batteries is not as simple, as it asks cooperation from the population, the government, the industries and the distributors(Espinosa et al., 2004) . Therefore, there are some problems with the collection of batteries. A life cycle assessment performed by the Environmental Resource Management (ERM) in 2000 showed that the collection activities such as transport where actually outweighing the benefits from the collection (Bernardes et al., 2004).
Also, consumers do not tend to bring their batteries to recycling bins. In research done by Sun et al. (2015) it is noticed that only 33.5% of primary batteries sold ever find its way into a recycling bin. More often than that the batteries are stored at home or thrown away in household waste (Sun et al., 2015) . Therefore, many European countries started practicing integrated waste management.
The last problem with the collection of batteries is the different compositions and sizes of batteries. It is simply not beneficial to recycle all batteries at once. The batteries need to be separated before going through their alternative recycling processes. Because of the problems
with battery collection, many countries have implemented strategies in order to maximize the collection of batteries, while minimizing the environmental impact of collecting batteries. In this section, certain strategies will be elaborated upon. Also, some unproven methods will be mentioned. It is clear, that there are problems with the collection of batteries. This section will focus on solutions as provided by different countries, but also on solutions that have not been implemented yet, but could be promising.
The first problem with battery collection is that the transport towards collection points is emitting much CO2. There are some alternative methods that counter this. For instance, in Sweden, the authorities put up boxes next to the bins for paper waste (Bernardes et al., 2004) . This way, the inhabitants of Sweden can return their batteries very close by home. A study in China suggests that bins nearby home is the most beloved way of collection under citizen's (Sun et al., 2015).
Another way is by letting batteries be part of household waste but select them at waste treatment plans. For instance, in Germany there is a system with magnets that is 99.9% accurate in retrieving batteries from household waste. The system recognizes batteries, can order them on the basis of photos and thereby reading the label. All the valuable information is processed and the batteries are ordered and placed in the right bins (Bernardes et al., 2004) . This had more success than a system in which the citizens themselves had to separate their batteries (Espinosa et al., 2004).
The above strategies are solutions in order to reduce environmental impact by collecting more batteries, but also by minimizing traffic towards collection bins. The final solution that will be presented will not minimize traffic, but could result in a drastic increase in the amount of batteries collected which is most important when researching the feasibility of circular ABP.
This solution is the implementation of new policy, where a deposit return system will be implemented. This means that the consumer pays extra money when buying the batteries, but can retrieve this extra money when retrieving the batteries. According to Kulshreshtha & Sarangi (2001) a deposit return system is the less costly of all price policies. This is of no surprise, as only the consumer pays extra when the batteries are discarded. It can be seen as a way of the polluter pays principle, where the polluter pays when environmental damage has been done. A second part of this policy is about deciding the price of this deposit. A questionnaire done by Sun et al. (2015) concluded that people are willing to pay between 13,6% and 15,6% as a deposit if the collection of batteries therefore increases. This is of importance to know, as deposit return systems have often faced opposition from producers, as it is expected it would lower the overall sales (Tojo, 2011). This could be true however, as the questionnaire also concluded that people will only pay this deposit when there are enough places for returning the batteries (Sun et al., 2015). Also, the questioned see it as the government's role to think about a policy and implement this. So, there is a big role for the government in order to apply such a policy.
5.3 Subquestion 3: How feasible is the production of circular alkaline batteries within the
current business environment?
After having assessed weather the manufacturing processes and logistics to achieve circular ABP are viable, an evaluation can be made about the feasibility within the current business environment. In the current business environment, corporate strategy can be seen as a determinant for the survival of firms. Companies that fail to establish clear goals and
organizational strategy, stand little chance against companies who do develop adequate strategy within their organization (Grant, 2016). A combination of factors such as, climate change, a growing pressure on the use of finite resources and an increasingly volatile business environment of fierce competition, urges companies to gain competitive advantage. Additionally, Senxian & Jutras (2009) demonstrate that achieving competitive advantage is one of the top pressures driving sustainable integration within firms (see Figure 1).
As the RBV framework suggests, a profound aspect within organizations are the internal resources and capabilities. Since the dynamics of tangible resources and organizational capabilities within a ABP industry have been discussed in section 5.1 and 5.2 this subquestion will focus on the effects on the intangible and human resources, as a consequence of the achievement of circularity within the ABP process, within firms.
Moreover, as mentioned in section 2.3, the RBV implies that the intangible and human assets of organizations have a great impact on achieving competitive advantage. After having conducted extensive research using diverse literature sources and research findings, it has become evident that an essential factor within the business environment today is the need to act in a sustainable and socially acceptable manner (Arbogast & Thornton, 2012) . Since the global economy is becoming increasingly transparent, companies that receive poor environmental ratings may experience sanctions by regulators and resistance of activist groups and NGOs (Vogels, 2010). Consequently, these ratings may result in losses of corporate reputation and thus long term wealth (Mackenzie, Rees & Rodionova, 2013) . Organizations can signal that they are acting in an environmental and socially responsible way by means of CSR programs. Strategic CSR is defined as any “responsible” activity that allows a firm to achieve a sustainable competitive advantage, regardless of motive (Mcwilliams & Siegel, 2010) . The circular ABP method could allow organizations to classify their products as ‘sustainable’ and thus this integration of circularity could signal CSR to consumers and shareholders.
Furthermore,the effects of integrating environmentally friendly practices in organizations by means of CSR programs could have various effects. Moreover, a significant relationship between corporate social responsibility (CSR) and company performance, measured in market to book value and return on capital employed, has been identified (Adeneye & Ahmed, 2015) . Additional, research has pointed out that87% of American consumers are likely to switch from one brand to another if the other brand is associated with a good cause, given that the price is the same (Du, Bhattacharya & Sen, 2010) . Lai et al. (2010) claims that environmentally friendly practices within organizations will enhance the firm's intangible resource, corporate reputation, leading to an increase in brand equity and brand performance.
As mentioned in section 2.3 the RBV of organizations suggest that firms with rare and valuable internal resources, possess competitive advantage leading to superior returns (Roberts & Dowling, 2002). In order for a resource to be rare it ought to be difficult to replicate by competing firms and thus this is the case for the resource ‘corporate reputation’ because of its intangible in nature (Roberts & Dowling, 2002) . Furthermore, Roberts & Dowling, 2002 argue that good reputation signals the underlying quality of a firm’s products whereas consumers may pay a premium for the offerings of high-reputation firms.
Also, an organization's engagement in CSR could have a substantial positive effect on their human resources by increasing organizational commitment (Ali, et al, 2010) . As research suggests that organizations with good reputation could gain cost advantage, since employees prefer to work for high-reputation firms (Robert & Dowlings, 2002) .Besides, research has also
claimed that the engagement of firms in CSR, contributes to the development of human capital by enhancing employee satisfaction(Barakat, et al. 2016) . However, the ability of strategic CSR to influence employee’s attachment, may vary between different cultures (Lee, Park & Lee, 2013). Also, the adequate signalling these sustainable practices to shareholders and customers is of essence (Gupta & Kumar, 2013).
Additionally, manufacturing companies that achieve the standard of circularity, can label their alkaline battery as ‘circular certified’, thereby signaling ethical business practices to consumers, stakeholders shareholders (Frombrun, 2005). Fromburn (2005) claims that these certifications will reduce a company’s exposure to reputation risk from non-governmental organization (NGO) activists whilst also differentiating the company and its products from those of rivals. To achieve this the manufacturing company would have to consult the certification body the International Organization for Standards and discuss the possibility for certification. In this subquestion it has become evident that there currently is a strong need for companies to become sustainable and thus achieving a circulair alkaline battery would be very beneficial for these ABP companies.
Figure 7: Top pressures driving the
sustainable agenda within companies; with 48 percent of the companies undergoing pressure to implement a sustainable agenda due to the desire to increase the intangible resource brand reputation and to achieve a competitive advantage. Provided by: Senxian & Jutras, 2009
6. Conclusion
6.1 Conclusion
To conclude, this paper has been aimed to gain insight into the ABP and contemplate whether the achievement of circularity would be feasible. Throughout the paper an interdisciplinary approach has been applied and the disciplines earth sciences, spatial planning and business have been integrated. Through insides from each discipline it became clear that the idea behind circularity is attractive, but still very difficult to establish.
The reversed supply chain in order to successfully create new alkaline batteries from old batteries has been analyzed and discussed. It became evident that the different steps between actors are not solidified as much as one would hope when trying to reach circularity. As is shown in the previous paragraphs there are obstacles that are hard to conquer in the current system, but could be solved in the future. The first obstacle is the yieldage of metals that can be retrieved when batteries are recycled and as of now this yield is still moderate. However, the hydrometallurgical route seems promising as it is cheap and can therefore be used massively in order to recycle more batteries and increase yields, this could make circularity feasible from a tangible resource standpoint. The second obstacle can be found in the organizational capabilities or the logistics part of the closed loop. The reversed logistics can be achieved, yet adequate management and communication is of essence. Besides since a big part of starting the reversed logistics is the collection of batteries, big improvements should still be made in order to become circular in the ABP. Finally it has become clear that businesses could obtain major opportunities as a result of the achievement of circular ABP methods. The valuable intangible and human resources of firms will experience added value, as corporate reputation and affective organizational commitment will be enhanced through an increase in CSR. However a obstacle remains that companies do not have advantage of buying recycled metals. This can however be changed through implementations and recommendations that are discussed in the next section.
The feasibility of a closed loop production of alkaline batteries depends on many actors and factors. The current day alkaline battery production system will not be able to support a successful sudden change into circularity. However, with adjustments, governmental ruling and more time to enhance technology a circular alkaline battery production could very well be the future.
6.2 Discussion & Recommendations
This paper suggested that a large part of the closed loop has already been established, but that the final step of closing the loop is missing. This section discusses what this research missed and recommendations for further research.
The first point of discussion is the disciplines that were used for this research. This paper is written from three different disciplines; earth sciences, spatial planning and business. However, in order to create a more coherent view on the feasibility of circularity within the ABP other disciplines are also important to consider. Political science can be of great importance because the recommendations as shown in the next paragraph suggest interventions that are strongly linked to governmental decisions. So, it is recommended that more disciplines are brought into the discussions of circularity.
The second recommendation is to look closer at how the final step of closing the loop can be closed. As is evident from the conclusion, a circular ABP is not yet feasible in the current day
system. This has mainly to do with the last ‘step’ of closing the loop towards circularity. This step is from the recycling companies to the producers. Our paper suggests that there are options that could enhance this final step. These options include: the government subsidizing battery producers if they buy recycled metals, internalizing the recycling companies within the producing companies and creating certification for sustainable batteries, which will therefore create comparative advantage. It is recommended that more elaborate research is done on which of these options would work best, and how such options can be implemented. When this final step towards circularity is successful, circular ABP is feasible.
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