This study addresses the challenges of information asymmetry and inefficiency in the recycling of new energy vehicle batteries by exploring a blockchain-based traceability system aimed at improving recycling efficiency, transparency, and reducing environmental risks. Blockchain technology was employed in the management of the full lifecycle of power batteries. An evolutionary game model was constructed to analyze the strategic interactions among battery manufacturers, vehicle manufacturers and the government, assessing their impact on system stability. Simulation results reveal that the blockchain traceability system, supported by appropriate incentive mechanisms and policy designs, significantly improves transparency and the efficiency of battery recycling management, while mitigating the negative effects of information asymmetry. The blockchain-based traceability system provides notable advantages in enhancing the management efficiency of power battery recycling. It offers a scientific foundation for policymakers, encouraging innovation and promoting the effectiveness of new energy battery recycling systems.