Towards a Circular Economy: Comprehensive Insights Into Lithium Iron Phosphate Battery Recycling and Utilization

ABSTRACT With the global push for renewable energy, lithium iron phosphate (LFP) batteries have become pivotal in electric vehicles (EVs) and energy storage systems (ESS) due to their safety, long lifespan, and low cost. However, large‐scale decommissioning of LFP batteries has highlighted the urgency of efficient recycling and utilization. This review systematically explores the necessity and current status of LFP battery recycling, with three novel focuses: (1) a comprehensive comparative analysis of four mainstream recycling technologies, integrating industrial data to clarify their technical maturity and applicability; (2) an in‐depth discussion of stepwise utilization, supported by case studies to validate its value in extending battery service life; (3) a forward‐looking framework linking recycling to the circular economy, identifying pathways to address key challenges. Ultimately, this review emphasizes that efficient LFP battery recycling not only mitigates critical material scarcity (lithium, iron) and environmental pollution but also drives sustainability in the new energy industry, offering actionable insights for industrial scaling.