Abstract As an energy storage device, battery has been rapid developed in recent years with the typical environmental problems such as consumption of resources and heavy metal pollution. Therefore, it is urgent to conduct a comprehensive analysis and in-depth interpretation of the environmental impact of the battery industry to reduce environmental pollution. Life cycle assessment is applied to analyze and compare the environmental impact of lead acid battery (LAB), lithium manganese battery (LMB) and lithium iron phosphate battery (LIPB) within the system boundary of “cradle-to-gate”. The key processes and the key substances of environmental impact are identified by the traceability. The results showed that the overall impact of LIPB production on environment is the smallest. The key substances that cause the environmental impact of LAB production process are refined lead and tin. Lithium manganate and aluminum shell are the key substances that cause the environmental impact of lithium manganese oxide production process. The key substances that cause the environmental impact of lithium iron phosphate production process are lithium iron phosphate and aluminum shell. According to the position of each key substance in the process, the Reduce-Reuse-Recycle principle of circular economy theory is adopted to suggest the corresponding optimization. This research can provide useful reference for government decision-making and the sustainable development of battery industry.