The increasing reliance on lithium-ion batteries (LIBs), particularly for mobile and electric devices, has raised serious concerns about resource depletion and environmental degradation stemming from improper disposal and ineffective recycling. As the electric vehicle sector continues to grow rapidly, driven by the global shift towards clean energy and sustainable technologies, lithium demand is expected to reach approximately 1.5 million metric tons (MT) by 2025 and surpass 3 million MT by 2030. Traditional recycling technologies, such as pyrometallurgy and hydrometallurgy, while effective, are energy intensive, financially burdensome, and environmentally detrimental due to the generation of substantial greenhouse gases and chemical waste. These constraints underscore the critical need for alternative, environmentally friendly recycling methods. Microbial bioleaching, a potential biotechnological strategy, provides an environmentally benign and cost-effective alternative for lithium recovery by leveraging the metabolic activities of certain bacteria. This chapter provides a complete summary of recent advances in microbial and enzymatic approaches for extracting lithium from used mobile batteries, with a focus on the roles of acidophilic bacteria, filamentous fungi, and microbial consortia. These microorganisms accelerate lithium solubilization by organic acid generation, redox reactions, and bioaccumulation, making bioleaching a viable technique for long-term e-waste treatment. Furthermore, this review investigates potential biotechnological approaches that might be integrated into present recycling systems to boost metal recovery efficiency while reducing environmental effects. It underlines the importance of biotechnology-driven lithium recovery in promoting circular economy models by providing ecologically sustainable and energy-efficient ways for recovering valuable metals from electronic waste.