A pricing model of power battery closed-loop supply chain under government subsidies

Government subsidy is a common policy to promote re-manufacturing. In order to explore the pricing and coordination mechanism of power battery production under this policy, a two-period model was proposed. This model combines the supply constraints of partial recovery and full recovery to study the impact of government subsidies on the recovery and fracturing pricing of power battery manufacturers. The study shows that moderate subsidies will increase the recovery rate under both supply constraints. However, high subsidies will increase the output of new power batteries, leading to oversupply, which is not conducive to environmental protection. Therefore, the optimal value of the subsidy is the calculated threshold.