Sustainable lithium-ion battery recycling: A review on technologies, regulatory approaches and future trends

Electric vehicles represent a crucial strategy for emission reduction, with lithium-ion batteries serving as the primary energy storage system. The worldwide electric mobility market was USD 597 billion in 2024 and expected to reach USD 4720 billion by 2034, growing 22.96 % annually. Due to the global increase in battery usage, the end-of-life batteries projected to reach 314 GWh by 2030. Improper battery disposal and management can cause fires, health problems, and environmental damage. Reusing and recycling solve various issues, including raw material shortages and rising costs. This review covers recycling technology, legal frameworks, economic and environmental advantages, and OEM views on used battery management. Life Cycle Analysis depicts recycling lithium-ion batteries tend to be cost effective and environment sound. Direct physical and biometallurgical recycling are more environmental and economically friendly, although pyrometallurgy and hydrometallurgy are preferred owing to their technological preparedness. The government should subsidise recycling, transfer technologies, automate recycling, and simplify battery design for recycling. These advances enable environmentally sustainable, efficient, and commercially feasible recycling procedures, enabling a cleaner, more circular battery ecosystem. • Lithium-ion battery recycling is need of the hour due to its enormous application. • Different recycling methods have their advantages and disadvantages. • Life cycle analysis confirmed recycling reduces environmental and economic impact. • Strengthen regulatory approaches and government support to enhance recycling. • An integrated approach is required for effective Lithium-ion battery recycling.