The rapid growth of portable electronics, electric vehicles, and renewable energy systems has led to a substantial increase in E-waste, particularly from end-of-life lithium-ion batteries (LIBs). As critical components of modern energy infrastructure, the disposal of these batteries presents significant environmental and resource recovery challenge. Concurrently, agricultural waste such as grape seeds, orange peels, rice husk, sugarcane bagasse, banana waste and others has emerged as another environmental concern due to poor waste management and improper disposal practices. Utilizing biomass-based leaching methods, valuable metals including lithium (Li), cobalt (Co), nickel (Ni), and iron (Fe) can be recovered with high efficiency, achieving recovery rates ranging 80–90%. This approach not only mitigates the environmental burden of agricultural waste but also enhances the sustainability of LIB recycling processes. The study explores the innovative use of agricultural biomass as an eco-friendly, low-cost reductant for metal recovery from spent LIBs, also the paper presents a detailed comparison between conventional and biomass-based recycling methods, analyzing the effectiveness, environmental impacts, and economic viability the conventional and biomass-based methods, it also discusses various leaching mechanisms using agricultural waste and evaluates their role in promoting sustainable resource management. By integrating these strategies within broader sustainability and circular economy frameworks, the study emphasizes the importance of developing green and innovative approaches to manage the growing volume of spent LIBs in an environmentally responsible and economically beneficial manner.