The electrification of vehicles and the transition to a circular economy (CE) are important aspects of the EU’s strategy to become climate neutral by 2050. However, the compatibility between these two objectives is questionable. Indeed, the lithium-ion batteries (LIBs) used in most electric vehicles (EVs) are currently difficult to recycle due to economic and practical challenges. This recycling problem increases the risk that end-of-life LIBs end up in landfills. If so, the CE would be severely punctured. Our study analyses how this potential inconsistency is addressed at the EU level by focusing on three EU legal instruments, i. e., the current and proposed regulatory framework for batteries and waste batteries, the End-of-Life Vehicles (ELV) Directive and the new Taxonomy Regulation. It observes that while the EU stands out in imposing sustainability requirements on the battery and vehicle industries, several shortcomings remain, such as the lack of specific legal provisions for LIBs, inappropriate targets and weak extended producer responsibility (EPR), which undermine the credibility of vehicle electrification as a climate change mitigation strategy in the EU.