With the widespread application of lithium-ion batteries in electric vehicles and the energy storage sector, the large-scale retirement of these batteries has created an urgent demand for effective recycling solutions. However, there is a lack of in-depth analysis regarding the waste generation characteristics associated with different recycling paths, and the potential environmental threats posed by wastewater, waste gas, and solid waste generated during the recycling process have not been quantitatively evaluated. This study investigates the recycling processes of spent lithium cobalt oxide (LCO) and nickel-cobalt-manganese (NCM) batteries. It provides a detailed overview of the recycling methods and waste generation pathways for these two types of batteries. Comprehensive environmental impact assessments (EIA), life cycle assessments (LCA), and economic analyses were conducted to quantify both environmental and economic impacts. Based on the analysis of the waste generation pathways, waste produced during the recycling process of both types of batteries consists mainly of heavy metal ions and substances contributing to chemical oxygen demand (COD) in the wastewater. This is primarily due to the use of hydrometallurgical treatment processes. The results of the environmental impact assessments indicate that the recycling of LCO batteries has a lower impact than that of NCM batteries. The LCA results are consistent with the EIA findings and reveal that marine ecotoxicity represents the most significant environmental impact, accounting for 93.8% and 86.3% of the total environmental impact for LCO and NCM batteries, respectively. Furthermore, the LCA shows that hydrogen peroxide and kerosene contribute 78.3% and 59.9% to the total environmental impact for LCO and NCM battery recycling, respectively, highlighting the substantial impact of key input materials. Economic analysis indicates that the proportion of environmental investment is higher for LCO batteries, suggesting a relatively lower burden for end-of-pipe treatment. In contrast, the total operating cost of NCM battery recycling is higher, reflecting the complexity and difficulty in separating their metal components. Sensitivity analysis results show that hydrogen peroxide and kerosene have the most significant influence on the environmental performance of LCO and NCM battery recycling, with sensitivity coefficients of 3.91% and 3.79%, respectively. In conclusion, the comprehensive evaluation reveals that LCO battery recycling is more environmentally friendly, while NCM battery recycling offers higher resource recovery value.