With the increased electrification of transportation, there is a growth in the number of electric vehicles (EV) in use, and hence also discarded EV batteries. It is critical to trace the batteries so that the policy of electrification does not lead to a negative impact on sustainability. To achieve the goals of circular economy, it is necessary to consider the sustainable extended life cycle strategies of reduce, reuse and recycle. Information gathering and sharing through the supply chain is the key driver for enabling the tracking and tracing of materials and services needed. Traceability indicators across the value chain may enable the creation of a comprehensive database that aids the circular economy goals. In this study, we discuss three different circular economy business models and identify the key traceability indicators for enabling circularity in the lithium-ion battery application in the automotive sector. Insights are used to develop a framework for viable EV battery circularity, capturing three key circular economy elements and four traceability characteristics for different circularity types.