Economic Sustainability of Scrapping Electric and Internal Combustion Vehicles: A Comparative Multiple Italian Case Study

Abstract

The transition to sustainable mobility is one of the most pressing and complex challenges for the automotive industry, with impacts that extend beyond the mere reduction of emissions. Electric vehicles, while at the center of this evolution, raise questions about the consumption of natural resources, such as lithium, copper, and cobalt, and their long-term sustainability. In addition, the introduction of advanced technologies, including artificial intelligence (AI) and autonomous systems, brings new challenges related to the management of components and materials needed for their production, creating a significant impact on supply chains. The growing demand for electric and autonomous vehicles is pushing the industry to rethink production models, favoring the adoption of circular economy principles to minimize waste and optimize the use of resources. To better understand the implications of this transition, this study adopts a multiple case study methodology, which allows in-depth exploration of different contexts and scenarios, and analysis of real cases of dismantling and recycling of internal combustion engines (ICEs) and electric vehicles (EVs). The research includes a financial simulation and a comparison of revenues from the dismantling of ICE and EV vehicles, highlighting differences in the value of recycled materials and the effectiveness of circular economy practices applied to the two types of vehicles. This approach provides a detailed overview of the economic benefits and challenges related to the management of the end of life of vehicles, helping to outline optimal strategies for a sustainable and cost-effective future in the automotive sector.

Keywords

• electric vehicles (EVs)
• ICE vehicles
• end-of-life (EOL)
• EV battery recycling
• scrapped vehicle management
• scrapping process