Bacterial cellulose (BC) is a bio-based material produced by bacteria, noted for its unique structure composed of cellulose nanofibers. This study incorporated BC into thepolyethylene oxide (PEO) polymer electrolyte to improve its film-forming properties. It also served as a separator to mitigate the risk of short circuits caused by lithium dendrites. A single-layer pouch cell battery was assembled utilizing the prepared PEO/BC-based polymer electrolyte, lithium iron phosphate (LFP) cathode, and lithium metal anode, followed by electrochemical performance evaluations. To assess the broader implications of this material, a life cycle assessment (LCA) was conducted to evaluate the environmental impact of integrating BC into polymer electrolytes. Key sustainability indicators, such as global warming potential, human toxicity, land use, and abiotic resource depletion, were analyzed. Additionally, techno-economic simulations were performed to explore the feasibility of scaling up BC-based polymer electrolytes for commercial applications, considering production costs and process efficiency. The assessments include key factors like materials costs, manufacturing expenses and economic feasibility. This work highlights the technical performance, environmental impacts and economic potential of the bio-based polymer electrolytes. The combined approach of experimental validation, environmental assessment, and economic feasibility highlights the potential of BC-enhanced polymer electrolytes as a sustainable and high-performance alternative for next-generation lithium metal batteries.