The growing adoption of lithium iron phosphate (LiFePO4) batteries in electric vehicles (EVs) and renewable energy systems has intensified the need for sustainable management at the end of their life cycle. This study introduces an innovative method for recycling lithium from spent LiFePO4 batteries and repurposing the recovered lithium carbonate (Li2CO3) as a carbon dioxide (CO2) absorber. The recycling process involves dismantling battery packs, separating active materials, and chemically treating the cathode to extract lithium ions, which produces Li2CO3. The efficiency of lithium recovery is influenced by factors such as leaching temperature, acid concentration, and reaction time. Once recovered, Li2CO3 can be utilized for CO2 capture in hydrogen purification processes, reacting with CO2 to form lithium bicarbonate (LiHCO3). This reaction, which is highly effective in aqueous solutions, can be applied in industrial settings to mitigate greenhouse gas emissions. The LiHCO3 can then be thermally decomposed to regenerate Li2CO3, creating a cyclic and sustainable use of the material. This dual-purpose process not only addresses the environmental impact of LiFePO4 battery disposal but also contributes to CO2 reduction, aligning with global climate goals. Utilizing recycled Li2CO3 decreases the demand for virgin lithium extraction, supporting a circular economy. Furthermore, integrating Li2CO3-based CO2 capture systems into existing industrial infrastructure provides a scalable and cost-effective solution for lowering carbon footprints while securing a continuous supply of lithium for future battery production. Future research should focus on optimizing lithium recovery methods, improving the efficiency of CO2 capture, and exploring synergies with other waste management and carbon capture technologies. This comprehensive strategy underscores the potential of lithium recycling to address both resource conservation and environmental protection challenges.