The rapid ongoing digital transformation creates new opportunities to generate value but also challenges companies in the manufacturing industry to adapt to the recent changes. Moreover, committing to sustainability is essential to maintain competitive advantages, build a more resilient company, and manage increasing societal demands and regulations. Referred to as a “twin transition”, the digital transformation can positively impact firms’ commitments to environmental sustainability. This paper explores challenges that small technology solution providers face on their path toward developing sustainable production solutions for their manufacturing customers. An empirical study was conducted in an industrial cluster of small and medium-sized companies (SMEs) providing innovative, tailor-made production technology solutions to manufacturing companies. As a result, a collaborative process model was suggested for such SMEs to overcome internal and external barriers to obtaining sustainability, thus better supporting the manufacturing companies, i.e., their customers, to strive towards more sustainable production.

Advanced manufacturing research for sustainable battery life cycles is of utmost importance to reach net zero carbon emissions (European Commission, 2023a) as well as several of the United Nations Sustainable Development Goals (UNSDGs), for example: 30% reduction of CO₂ emission, 10 million job opportunities and access to electricity for 600 million people (World Economic Forum, 2019). This editorial paper highlights international motivations for pursuing more sustainable manufacturing practices and discusses key research topics in battery manufacturing. Batteries will be central to our sustainable future as generation and storage become key components to on-demand energy supply. Four underlying themes are identified to address industrial needs in this field: 1. Digitalizing and automating production capabilities: data-driven solutions for production quality, smart maintenance, automation, and human factors, 2. Human-centric production: extended reality for operator support and skills development, 3. Circular battery life cycles: circular battery systems supported by service-based and other novel business models, 4. Future topics for battery value chains: increased industrial resilience and transparency with digital product passports, and next-generation battery chemistries. Challenges and opportunities along these themes are highlighted for transforming battery value chains through circularity and more sustainable production, with a particular emphasis on lithium-ion batteries (LIB). The paper concludes with directions for further research to advance a circular and sustainable battery value chain through utilizing the full potential of digitalization realising a cleaner, more energy-efficient society.

Circular value chains, driven by sustainability goals and resource efficiency, are now central in industrial strategies. Simultaneously, digital technologies transform business models and accelerate the shift towards circular economies. This paper explores circular material flow for the electrification of the vehicle fleet, focusing on the Lithium-ion battery value chain. In the paper, a conceptual model integrating digitalization is developed and evaluated to enhance efficiency and product innovation. The paper reviews the lithium-ion battery value chain literature and investigates digitalization potentials for circular business models. A conceptual model is presented in this study to represent the intricate relationship between each stage of the value chain and the concept of circularity while considering the carbon footprint and complexities associated with the implementation of digitalization.