Lithium-ion batteries are widely implemented in applications and areas such as personal portable devices (PPD) and electric vehicles (EVs). Based on the rapid manufacturing development of LIBs, besides the notable increase in PPD consumption during COVID-19, limited regions, the rising prices of raw materials of LIBs, and the irresponsible disposal of LIBs in landfills cause a serious high risk to the environment and human health. Because of this, recovering precious materials from spent LIBs can solve the problem of limited available resources and mitigate environmental and human health impacts. This review aims to critically assess the available information on different aspects of recycling spent LIBs. In addition, a brief review of policies and regulations for some developed and developing countries will be provided, and it then examines the waste mobile phones, the customers' perceptions of disposal and recycling spent LIBs, the human health and environmental impacts of spent Lithium-ion batteries (LIBs) upon disposal and recycling, the economic aspects of recycling spent LIBs, the circular economy for spent LIBs, and the conventional and sustainable recycling processes on a commercial and laboratory scales will be discussed. Due to the lack of published review papers that covered all aspects of sustainable recycling processes spent LIBs, economic feasibility, circular economy, and environmental impact analysis, this review concludes with recommendations on future research the need for a holistic approach to achieving the circular economy strategies of spent LIBs recycling processes. Furthermore, this study will be helpful to scholars, policy makers, and producers to achieve the long-term sustainability of lithium-ion batteries.