The booming development of the new energy vehicle industry has ed a significant rise in the amount of end-of-life power batteries, which in turn generates a huge amount of solid waste. Reuse of retired power batteries through laddering utilization and recycling can not only realize the resourceful reuse of valuable metals but also reduce carbon emissions and production costs. As an important part of developing the circular economy and promoting the intensive use of resources, the recycling and the resource utilization of power batteries are of great significance to the implementation of the carbon peaking and carbon neutrality strategy and the promotion of the construction of ecological civilization. Currently, a substantial body of literature and information pertaining to retired batteries has been extensively disseminated across the pertinent domains. Consequently, it is imperative to consolidate the pivotal insights within the industry to furnish industry professionals with a comprehensive point of reference. Overall, based on the current situation of the industry, the main purpose of this review is to discuss the environmental and economic impacts of the different recycling and reusing methods for retired batteries from the perspectives of the recycling process. By analyzing the current situation of recycling and summarizing the progress of research, an accounting method for carbon emissions from decommissioned power batteries is proposed, and then it is pointed out the necessity and feasibility of recycling. The aim of this review is to provide new insights into building waste-free cities and achieving carbon peaking and carbon neutrality target. It is hoped that the battery recycling industry will be able to realize healthy and orderly development in the future under the macro-control of the country, combined with efficient and eco-friendly retired battery recycling technology and relevant standards and norms.