The rapid growth of lithium iron phosphate (LiFePO4, LFP)-based lithium-ion batteries in energy storage raises urgent challenges for resource recovery and environmental protection. In this study, we propose a novel method for rapid and selective lithium extraction and the resynthesis of cathodes from spent LFP batteries, aiming to achieve an economically feasible and efficient recycling process. In this process, a selective leaching H2SO4-H2O2 system is employed to rapidly and selectively extract lithium, achieving a leaching efficiency of 98.72% within just 10 min. Through an exploration of the precipitation conditions of the lithium-containing solution, high-purity Li2CO3 is successfully obtained. The recovered FePO4 and Li2CO3 are then used to resynthesize LFP cathode materials through a carbon-thermal reduction method. A preliminary economic analysis reveals that the disposal cost of spent LFP batteries is approximately USD 2.63 per kilogram, while the value of regenerated LFP reaches USD 4.46, highlighting the economic advantages of this process. Furthermore, with an acid-to-lithium molar ratio of only 0.57-just slightly above the stoichiometric 0.5-the process requires minimal acid usage, offering clear environmental benefits. Overall, this work presents a green, efficient, and economically viable strategy for recycling spent LFP batteries, showcasing strong potential for industrial application and contributing significantly to the development of a circular lithium battery economy.