Upcoming regulations aim to ban per- and polyfluoroalkyl substances (PFAS), including commercial polymeric PFAS, or fluoropolymers, such as poly(tetrafluoroethylene) (PTFE) and poly(vinylidene fluoride) (PVDF), due to their environmental and toxicological impacts. However, fluoropolymers also provide crucial properties for clean energy transitions, and their regulation may hinder further technological advancements. Therefore, a facile one-pot recycling-upcycling strategy for fluoropolymers using inexpensive biomass, such as cellulose nanocrystals (CNCs), as absorbents and cocomponents for fluoro-functionalized composites could align with global sustainability goals and technological demands. Herein, we present a closed-loop CNC-in-solvent (CiS) processing system, which involves stirring fluoropolymers and CNCs in only low-polarity solvents like toluene (CiS-T). Our study reveals that CiS-T is a two-step process where the CNC-solvent interaction exposes CNCs' reducing end aldehyde protons due to solvent polarity and promotes H-F bond formation. The solvent used was recollected and reused. Additionally, we demonstrate the practical application of PTFE- and PVDF-CNC hybrids, byproducts of the CiS-T process, as performance-enhancing agents in green-energy-harvesting devices such as triboelectric nanogenerators. Our findings not only offer a sustainable method to overcome challenges from regulations against commercial fluoropolymers but also offer insights into developing an efficient, solvent-mediated CNC functionalization process that addresses forthcoming challenges in key industries.