In Pursuit of Closed‐Loop Supply Chains for Critical Materials: An Exploratory Study in the Green Energy Sector

Abstract

SummaryA closed-loop supply chain (CLSC) is considered not only an important solution for ensuring sustainable exploitation of materials, but also a promising strategy for securing long-term availability of materials. The latter is especially highlighted in the materials criticality discourse. Critical raw materials (CRMs), being exposed to supply disruptions, create an uncertain operational environment for many industries, particularly for green energy technologies that employ multiple CRMs. However, recycling rates of CRMs are very low and engagement of companies in CLSC for CRM is limited. This study examines factors influencing CLSC for CRM development in photovoltaic panels and wind turbine technologies. The aim is to analyze how the factors manifest themselves in different companies along the supply chain and to identify enabling and bottleneck conditions for implementation of CLSC for CRM. The novelty of the study is twofold: the focus on material rather than product flows, and examination of factors from a multiactor perspective. The evidence obtained suggests that the manufacturing companies and reverse supply-chain operators engaged in the study take different perspectives (product vs. material) regarding development of CLSC for CRM and thus emphasize different factors. The findings underline the need for interactions between supply-chain actors, a sound competitive environment for recycling processes, and investment in technologies and infrastructure development if CLSC for CRM is to be developed. The paper provides implications for practitioners and policy makers for implementation of CLSC for CRM, and suggests prospects for further research.

Managerial practices for designing circular economy business models

“…The nature of the relationship with suppliers has a significant impact on realizing a circular economy business model as a circular economy intrinsically requires a systems approach (Bertalanffy 1950;Ghisellini et al 2014;Van Dijk et al 2014) and the involvement of all value chain actors (Lapko et al 2018;Bocken et al 2018). The communication through the supply chain network should then be improved by leveraging shared value and trust to collectively reach the intended goal.…”

Closing the loop on platinum from catalytic converters: Contributions from material flow analysis and circularity indicators

“…For instance, Gaustad et al (2018) examined CE strategies to mitigate critical material supply issues. Accordingly, Lapko, Trianni, Nuur, and Masi (2018) made a focus on closed-loop supply chain (CLSC) as a promising strategy for securing long-term availability of materials.…”

“…() examined CE strategies to mitigate critical material supply issues. Accordingly, Lapko, Trianni, Nuur, and Masi () made a focus on closed‐loop supply chain (CLSC) as a promising strategy for securing long‐term availability of materials. Their findings underline the need for interactions between supply chain actors, a sound competitive environment for recycling processes, and investment in technologies and infrastructure development if CLSC for CRM is to be developed.…”

A Theoretical Foundation for Developing a Prescriptive Method for the Co-Design of Circular Economy Value Chains

“…Although both perspectives acknowledge the role of managers' bounded rationality and perceptions of different valuations by stakeholders, they do not account for such radically different perceptions as to what constitutes a 'resource' in the first place, for instance. Such differences have been shown to complicate change processes towards CEVCs, leading different actors to set different priorities, emphasise different success factors and set different scopes for CE (Hagelüken, 2014;Lapko et al, 2018). Kraaijenbrink et al (2010) point out directions for the development of RBV that address this critique.…”