The market for electric vehicle (EV) batteries is expected to develop significantly between 2017 and 2030, with an estimated $300 billion growth potential due to India’s ambitious goal of having all vehicles run on electricity by the year 2030. The fact that batteries are disposed of as hazardous waste at the end of their lives has, however, brought serious environmental issues with their widespread use. However, if properly handled, waste batteries have a significant potential to produce job possibilities and financial gains. The development of cutting-edge technology for evaluating vital battery parameters like lifetime, voltage, and current flow—which are required for developing a recycling system that is both economically and environmentally viable—is essential to solving this twin problem. But the intricate structure of lithium-ion batteries and their changing designs provide significant challenges to the development of all-encompassing recycling plans, highlighting the continual need for innovation and adaptability. The present status of lithium-ion battery recycling methods is critically examined in this review article, which also highlights cutting-edge technology and creative ideas meant to address pressing issues. This paper highlights the role that efficient waste management plays in helping India achieve its goals of electric transportation and a circular economy that is beneficial to both long-term prosperity and environmental sustainability. It does this by examining the economic opportunities and environmental implications of sustainable battery recycling.