The rechargeable secondary Lithium ion (Li-ion) battery is expected to grow to more than $6.3 billion by 2012 from ~$4.6 billion in 2006. With the development of personnel electronics, hybrid and electric vehicles, Li-ion batteries will be more in demand. However, Li-ion batteries are not widely recycled because it is not economically justifiable (in contrast, at present more than 97% Lead-acid batteries are recycled). So far, no commercial methods are available to recycle different chemical Li-ion batteries economically and efficiently. Considering our limited resources, environmental impact, and national security, Li-ion batteries must be recycled. A new methodology with low temperature and high efficiency is proposed in order to recycle Li-ion batteries economically and with industrial viability. The separation and synthesis of cathode materials (most valuable in Li-ion batteries) from recycled components are the main focus of the proposed research. The analytical results showed that the recycling process is practical and has high recovery efficiency, create great commercial value as well.