The wide use of lithium ion batteries (LIBs) has brought great numbers of discarded LIBs, which has become a common problem facing the world. In view of the deleterious effects of spent LIBs on the environment and the contained valuable materials that can be reused, much effort in many countries has been made to manage waste LIBs, and many technologies have been developed to recycle waste LIBs and eliminate environmental risks. As a review article, this paper introduces the situation of waste LIB management in some developed countries and in China, and reviews separation technologies of electrode components and refining technologies of LiCoO₂ and graphite. Based on the analysis of these recycling technologies and the structure and components characteristics of the whole LIB, this paper presents a recycling strategy for all components from obsolete LIBs, including discharge, dismantling, and classification, separation of electrode components and refining of LiCoO₂/graphite. This paper is intended to provide a valuable reference for the management, scientific research, and industrial implementation on spent LIBs recycling, to recycle all valuable components and reduce the environmental pollution, so as to realize the win–win situation of economic and environmental benefits.