The integration of lithium into technological applications has profoundly influenced human development, particularly in energy storage systems like lithium-ion batteries. With global demand for lithium surging alongside technological advancements, the sustainable extraction and recovery of this critical material have become increasingly vital. This paper explores lithium’s role, its chemical properties, and the environmental and economic considerations associated with its extraction and recovery. We examine various lithium recovery methods, including conventional techniques such as hydrometallurgy, pyrometallurgy, and direct physical recycling, as well as emerging technologies like mechanochemistry, ion pumping, and bioleaching while emphasizing the need for sustainable practices to address environmental challenges. The review also discusses the challenges and future directions of lithium recovery. Advances in technology have streamlined lithium recovery processes and spurred the development of innovative extraction techniques. This paper concludes with an emphasis on further research essential to deepen our understanding of lithium recovery methods, their strengths and limitations, and the need to explore new strategies to meet the growing global demand for this indispensable resource.