Electrochemical storage technologies are essential for transformation towards electrification in both building and transportation sectors. The high cost, intensified carbon density and performance ageing of electrochemical batteries prevent its sustainable applications. Many studies have explored the battery circular economy based on reusing retired EV batteries with economic and environmental competitiveness. However, few studies combine battery circular economy with E-mobility-based interactive renewable energy sharing network for sustainability, together with comprehensive considerations on dynamic battery performance and degradation. In this study, a building-vehicle energy interaction model and a battery circular economy model were developed to simulate the process of reusing retired EV batteries. Considering the inconsistency in the carbon intensity of battery operation, manufacturing and recycling phases, a lifecycle battery carbon intensity criterion is proposed to quantify the lifetime carbon of batteries, and assess the decarbonisation capability of different renewable sources, battery reusing and V2B/B2V interaction, respectively. Results show that reusing retired batteries from EVs to buildings can improve the demand coverage ratio (DCR) from 0.480 to 0.504 and the renewable penetration ratio (RPR) from 0.502 to 0.531, respectively. Furthermore, the battery carbon intensity cannot be offset unless both renewables and reused batteries are integrated. The case study demonstrates the decrease of battery carbon intensity from 1284.57 kg CO2,e/kWh to −720.79 kg CO2,e/kWh with renewable and reused batteries. Research results can provide innovative battery circular economy frameworks for electrification transformation, decarbonisation and sustainable development.