Degraded LiCoO2 cathode from retired Li‐ion batteries is urgently required to be recycled in a greener way for economic and environmental considerations. The coarse metallurgy technologies for Li/Co extraction with massive CO2 emission and energy consumption cannot satisfy the requirements of carbon neutralization. Herein, it is proposed that direct regeneration of degraded LiCoO2 cathode could be realized via 9‐fluorenone‐mediated Li supplementation and follow‐up structural restoration. The 9‐fluorenone‐lithium reagent is elaborately selected to compensate for the missing Li+ into lattice with targeted stoichiometry owing to its compatible redox potential of 1.95 V versus Li+/Li, which is located just between the reversible intercalation (3.8 V) and irreversible conversion (1.2 V) potentials of LiCoO2 electrode. Then, thermal energy‐driven structure reorganization enables Li/Co atoms to occupy the right sites, accomplishing desirable structure healing within a short annealing time of 4 h. The regenerated LiCoO2 cathode exhibits comparable Li‐storage capability to commercial LiCoO2, benefiting from the non‐destructive direct regeneration technology. In addition, the regeneration route is regarded as environmentally (0.13 kg CO2 kg−1 cell) and economically (10.07 $ kg−1 cell) superior to conventional recycling routes based on life‐cycle analysis. The precise surgery on spent LiCoO2 cathode provides a promising solution for the forthcoming retirement rush of Li‐ion batteries.