The radical change in the automotive sector with electric vehicles and the entry of new electric vehicles into the market significantly reduce the profitability and market dominance of traditional automotive companies based on internal combustion engines. Many factors determine the demand for electric vehicles in the automotive sector. The increase in demand for electric vehicles has also increased the demand for batteries. The key factor affecting the demand for electric vehicles is the changing costs associated with battery technology. Decreasing battery costs have led to significant increases in the sales of electric vehicles on a global basis. This situation indicates that there is a close relationship between the performance of firms in the battery sector and the demand for electric vehicles and its impact on the traditional automotive sector. In this context, the main objective of the study is to analyze the relationship between the INDXX Global Battery Recycling and Production Index, which measures the performance of firms in the battery sector on a global basis between 4/01/2020 and 12/08/2023, and the automotive sector index returns of 32 countries using both the traditional and the Fractional Frequency Flexible Fourier Form Toda and Yamamoto (FFFF-TY) causality test developed by Pata and Yılancı (2020). As a result of the analysis, a permanent causality relationship was determined from the performance of firms operating in the battery sector to automotive sector returns in 17 of the 32 countries analyzed. Another important result of the study is that the automotive sectors of Asia-Pacific countries stand out geographically in the relationship structure.