This paper presents a systems-level framework for lifecycle management and recycling of spent lithium-ion battery components that integrates design-for-circularity, digital traceability, and high-yield recovery technologies. The framework comprises five layers: (1) product and supply intelligence, (2) collection and reverse logistics, (3) triage and second-life allocation, (4) safe disassembly and materials recovery, and (5) circular reintegration and reporting. Layer one embeds battery passports and bill-of-materials disclosure to standardize chemistries, enable hazard classification, and support responsible sourcing. Digital identifiers and condition data flow into a cloud ledger to forecast volumes, chemistries, and residual energy. Layer two operationalizes compliant collection, transport, and aggregation. Route optimization, de-energizing protocols, tamper-evident containers, and UN 38.3-aligned packaging reduce incidents and cost per kilogram moved. Layer three prioritizes cascading use. Modules above state-of-health thresholds are repurposed for stationary storage with warranty-informed duty cycles, while below-threshold packs are routed to recovery based on chemistry, contamination, and residual energy. Layer four integrates deactivation, depack, and cell opening with engineering controls for thermal runaway, hydrogen fluoride, and solvent emissions. A hybrid recovery train combines mechanical liberation and density separation with targeted hydrometallurgy, pyrometallurgy where appropriate, and direct-recycling to preserve cathode crystal structure. Process intensification leach–electrowin circuits, selective precipitation, solvent extraction, and ion exchange yields battery-grade lithium salts, nickel, cobalt, manganese, graphite, copper, and aluminum. Binder and electrolyte management include PVDF recovery and solvent distillation with off-gas scrubbing. Layer five closes the loop through specification-driven offtake, environmental and social performance accounting, and adaptive planning. Dynamic life-cycle assessment quantifies impacts relative to virgin mining, while techno-economic analysis benchmarks levelized recovery cost under variable feed composition and policy incentives. Governance elements align extended producer responsibility, occupational safety, and due diligence with recognized standards, enabling verifiable recycled content, emissions baselines, and traceability. Key performance indicators include capture rate, recovery yield, product purity, carbon intensity per kilogram recovered, cost per kilowatt-hour processed, incident rate, and turnaround time. The framework’s modularity supports regional tailoring, from micro-facilities integrated with e-waste aggregators to giga-scale hubs co-located with cathode manufacturing. By orchestrating data, operations, and policy, the framework accelerates battery circularity, mitigates supply risk, and reduces environmental burdens while creating jobs.