The transport sector, particularly electric vehicles (EVs), plays a pivotal role in mitigating climate change. However, the use of lithium-ion (li-ion) batteries in EVs raises sustainability concerns due to their limited lifespan, high costs, potential raw material shortages, and the environmental impact of raw material mining. These concerns necessitate the incorporation of sustainable development strategies into EV innovation plans. With a booming EV market, both luxury and non-luxury brands are being urged to adopt circular economy strategies, such as battery reuse and recycling, to enhance the brand-customer relationship. While the automotive industry has begun implementing these strategies, there is limited research on how they affect customer acceptance and the impact on luxury versus non-luxury brands. This thesis examines the existence of differences and influence of these circular economy strategies on the EV industry, with a particular focus on li-ion batteries, and analyzes their impact on luxury and non-luxury automotive EV brands.