Lithium-ion batteries (LIBs) have become the leading energy storage technology because of their high specific energy, excellent efficiency, and longer lifespan. This review offers a comprehensive overview of the lithium battery industry, covering lithium materials and the global supply chain, as well as examining traditional and sustainable extraction methods. The discussion includes the technical and environmental challenges of each extraction method, with particular emphasis on feedstock selection, which greatly influences lithium recovery efficiency, yield, and ecological impact, and capital and operating expenditures. It also investigates the growth of the global battery recycling industry and provides an outlook on innovations in this area. These innovations include recycling systems, a case study on Biomass Energy Systems Inc., and the battery chemistries needed to support a circular economy. The review highlights industrial applications of LIBs in sectors such as automotive, consumer electronics, and aerospace. Finally, it addresses supply chain and recycling challenges related to LIBs, positioning cost, environmental footprint, and regulatory compliance as central considerations for the future of the battery industry.