Governments worldwide are advancing efforts to establish comprehensive regulatory frameworks for the circular economy of electric vehicle batteries. However, current regulations often overlook the impacts of transboundary trade. This article argues that while these cross-border practices may help companies reduce costs and comply with regulatory targets, they pose environmental risks, create regulatory loopholes, and undermine incentives to build domestic recycling capacity. To ensure effective battery recycling on a global scale, governments should introduce dedicated regulatory frameworks for cross-border trade activities to avoid ambiguities. International standards for information labeling and traceability systems covering batteries, waste batteries, and recycled materials are also needed. These governance efforts call for more research focused on the dynamics and impacts of transboundary trade in electric vehicle battery recycling.

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