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The limited fossil fuel supply toward carbon neutrality has driven tremendous efforts to replace fuel vehicles by electric ones. The recycling of retired power batteries, a core energy supply component of electric vehicles (EVs), is necessary for developing a sustainable EV industry. Here, we comprehensively review the current status and technical challenges of recycling lithium iron phosphate (LFP) batteries. The review focuses on: 1) environmental risks of LFP batteries, 2) cascade utilization, 3) separation of cathode material and aluminium foil, 4) lithium (Li) extraction technologies, and 5) regeneration and transformation of cathode materials. Detailed analyses are elaborated with case examples and technical challenges. Our critical analysis demonstrates that compared with retired lithium nickel cobalt manganese oxide (NCM) batteries, LFP batteries do not contain the high-value elements such as Co and Ni, so …