The traditional sodium desulfurization process for waste lead-acid batteries is beneficial to the environment; however, it is limited by poor economic viability as the cost of desulfurizer is much higher than the value of desulfurization by-products. This study proposes a new closed-loop pre-desulfurization process for lead paste, which consumes only lime as the indirect desulfurizer, produces sodium sulfate as a by-product, and regenerates sodium hydroxide as the direct desulfurizer. The concentration of prepared sodium hydroxide reached 2.57mol/L when the reaction was conducted at room temperature for 2.0h, with a sodium oxalate: calcium oxide molar ratio of 1:1.3, a CaO: water mass ratio of 1:6, and magnetic stirring at 600rpm. Cost estimation and economic analyses were also conducted. The cost of lead paste generated by this new pre-desulfurization process was 37.62 dollars/ton lower than traditional high-temperature smelting, and 44.42 dollars/ton lower than direct sodium pre-desulfurization. Thus, this process provides a practical and feasible clean recycling method for waste lead-acid batteries with significant environmental and economic benefits.