FWIW: the metal components of lithium batteries (especially cobalt) tend to be the economically limiting resources, not the lithium itself. But the point is valid: batteries are indeed harder to recycle than bulk steel, but relative to the cost of extracting new materials recycling is far more effective economically.

Also: it's not like EVs don't have steel chassis. It's (very roughly) the engine block and transmission mass that gets replaced by a battery. Once you remove that battery, the vehicles recycle identically. The only question is about how effective battery recycling is or can be (and it's pretty good already!)