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The increasing adoption of electric vehicles (EVs) is widely recognized as a pivotal strategy for mitigating climate change. However, the surge in EV usage brings significant challenges regarding the end-of-life management of lithium-ion batteries, particularly in geographically isolated islands, such as Vancouver Island, Canada. This study addresses the urgent need for effective waste management solutions by integrating life cycle assessment (LCA) and multi-criteria decision analysis (MCDA) to evaluate six distinct scenarios for managing spent EV batteries. These scenarios encompass pyrometallurgical and hydrometallurgical recycling, on-island and off-island repurposing for secondary applications, and landfilling. A comprehensive assessment of environmental, social, and economic impacts reveals that all management strategies, except landfilling, positively contribute to environmental performance. Among all scenarios, on-island repurposing emerges as the most feasible option across multiple impact categories, including terrestrial ecotoxicity, human health, and abiotic resources. Furthermore, hydrometallurgical recycling shows promise due to its efficiency and lower environmental burden compared to the pyrometallurgical method. The results offer valuable insights into optimizing waste EV battery management systems in island contexts and underscore the potential for innovative approaches. This research provides a framework for policymakers to optimize waste EV battery management systems in island regions, ensuring sustainable practices that align with growing EV markets.