To　address　the　rapidly　growing　demand　for　energy　storage　and　power　sources,　large　quantities　of　lithium-ion　batteries　(LIBs)　have　been　manufactured,　leading　to　severe　shortages　of　lithium　and　cobalt　resources.　Retired　lithium-ion　batteries　are　rich　in　metal,　which　easily　causes　environmental　hazards　and　resource　scarcity　problems.　The　appropriate　disposal　of　retired　LIBs　is　a　pressing　issue.　Echelon　utilization　and　electrode　material　recycling　are　considered　the　two　key　solutions　to　addressing　these　challenges.　Consequently,　both　approaches　have　become　integral　to　the　life　cycle　of　LIBs,　encompassing　production　and　use.　The　pressure　to　protect　the　ecological　environment　and　the　scarcity　of　metal　resources　have　necessitated　the　importance　of　echelon　utilization　and　material　recycling　of　retired　LIBs.　These　practices　have　emerged　as　important　contributors　to　the　sustainable　development　of　the　battery　industry.　This　paper　provides　a　comprehensive　review　of　the　echelon　utilization　and　material　recycling　of　retired　batteries.　First,　the　reasons　for　the　performance　degradation　of　LIBs　during　use　are　comprehensively　analyzed,　and　the　necessity　of　recycling　retired　batteries　is　analyzed　from　the　perspectives　of　ecology　and　safety,　sustainable　development,　economy,　energy　conservation　and　emission　reduction.　Second,　the　key　technologies,　problems　and　challenges　faced　by　the　current　echelon　utilization　are　summarized,　as　are　typical　application　examples　at　home　and　abroad.　Third,　the　recycling　technology　of　waste　LIB　materials　is　systematically　summarized,　including　traditional　recycling　technology　and　new　green　recycling　technology,　as　well　as　direct　recycling　technology　for　waste　LIB　materials.　Finally,　the　potential　for　echelon　utilization　and　the　recycling　of　waste　battery　materials　are　explored,　and　several　conclusions　are　drawn.