Electric vehicles are introduced to the Malaysian market due to the increase of energy demand in transportation sector. The batteries reaching end-of-life consists of harmful chemicals endangers wellbeing of society and ecosystem, moreover the materials contain in the battery are valuable. Hence, the idea of recycling used lithium-ion (Li-ion) battery has been introduced to conserve the environment and reusable substances in the used batteries. Firstly, it is important to carry out investigation on the composition, disassembly process and recycling methods of Li-ion batteries that is used in an electric vehicle. Next, identifying list of resources required in setting up a battery recycling factory helps to calculate and estimate the total cost and budgeting for the set-up of a battery recycling factory. The recycling factory was planned to operate with a 550 tonnes capacity annually. It was estimated that the recycling factory would initially generate a gross and net profit of RM 6,389,545.16 and RM 4,497,969.41 respectively. The recycling factory will require RM 4,745,284.67 of investment as a kick start of the business. By the end of this study, a budgeted profit and loss account, a 12-month cash flow forecast will be proposed according to the annual capacity of 550 tonnes.