Efficient recycling of spent Li‐ion batteries is performed to recover the anode material, graphite, in a facile and green approach. The recovered graphite (RG) is mechano‐chemically milled with SiOx to formulate various concentrations of composite (RG: SiOx). The RG: SiOx is anticipated to undergo the simultaneous insertion‐alloying process and subsequently be employed as an anode for Lithium‐ion capacitors (LICs). The LICs are one of the most modern energy storage devices of great research interest due to their high energy and power capabilities. The high surface area activated carbon (AC) is a counter electrode in LIC assembly. The LIC is assembled with an electrochemically prelithiated anode (LixSi + LiC6 + Li2O) and paired with AC under balanced mass loading conditions. Before the LIC is fabricated, half‐cell studies are performed to assess the capacity, and they are used to adjust the mass balance. Accordingly, the LIC delivered a maximum energy density of 218 Wh kg–1 (at a power density of 8.45 kW kg–1) with an ultra‐long cycling life of over 20,000 cycles. Remarkably, the energy densities such as 208.7 and 201.4 Wh kg–1 are observed at various temperature conditions like 10 and 40 °C, respectively, with excellent capacity retention characteristics.