The demand for electric batteries is rising in developing countries like Bangladesh due to the increased demand for electric vehicles and energy storage systems. However, electric batteries contain toxic substances such as lead (Pb) and sulphuric acid (H₂SO₄) that are extremely detrimental to the environment. Hence, sustainability is crucial for the Electric Battery Industries (EBIs). To make the supply chain circular, it is necessary to identify the underlying obstacles to implementing the Circular Supply Chain (CSC). This study aims to explore the barriers to implementing CSC in Bangladesh's EBIs. Related barriers were defined using the PESTEL (Political, Economic, Social, Technological, Environmental and Legal) framework, and the contextual relationship among the identified barriers was developed using Interpretive Structural Modelling (MICMAC i.e., Cross Impact Matrix Multiplication Applied to Classification technique), followed by a cause-effect analysis of the driving barriers to determine the root causes. Lack of sustainable development planning, lack of knowledge about the environment, health, and future generations, lack of coordination among industries and supply chain partners, increased competition, lack of investment in technological innovation, and low quality of circulated products are the root causes of the driving barriers to implementing CSC in Bangladesh's EBIs. Government and supply chain partners in EBIs must employ a comprehensive strategy for sustainable development. Implementation of CSC facilitates economic development, environmental enhancement, and job creation.