;With the rapid growth of green industries such as electric vehicles and renewable energy storage systems, the demand for lithium-ion batteries has surged. Critical materials like lithium, cobalt, and nickel are essential for these batteries and play a strategic role in energy transitions and technological advancement. However, the environmental impact and geopolitical risks of mining these metals have shifted global focus to battery recycling as a cornerstone of the circular economy. This study evaluates the development of recycling technologies, their economic viability, and policy implications. Traditional recycling methods are assessed alongside innovative technologies, which show potential for improving efficiency, reducing energy consumption, and lowering carbon footprints. Key challenges include cross-border waste battery trade, lack of standardization, and unclear recycling responsibilities. Correspondingly, policy recommendations are proposed to establish a sustainable and flexible battery metal recycling system in Taiwan, addressing global resource competition and environmental sustainability.