Recovering valuable metals from spent lithium-ion batteries (LIBs), a kind of solid waste with high pollution and high-value potential, is very important. In recent years, the extraction of valuable metals from the cathodes of spent LIBs and cathode regeneration technology are still rapidly developing (such as flash Joule heating technology to regenerate cathodes). This review summarized the studies published in the recent ten years to catch the rapid pace of development in this field. The development, structure, and working principle of LIBs were firstly introduced. Subsequently, the recent developments in mechanisms and processes of pyrometallurgy and hydrometallurgy for extracting valuable metals and cathode regeneration were summarized. The commonly used processes, products, and efficiencies for the recycling of nickel–cobalt–manganese cathodes (NCM/LCO/LMO/NCA) and lithium iron phosphate (LFP) cathodes were analyzed and compared. Compared with pyrometallurgy and hydrometallurgy, the regeneration method was a method with a higher resource utilization rate, which has more industrial application prospects. Finally, this paper pointed out the shortcomings of the current research and put forward some suggestions for the recovery and reuse of spent lithium-ion battery cathodes in the future.