The rapid accumulation of spent LiFePO4 (LFP) cathodes from retired lithium-ion batteries necessitates the development of effective and environmental-friendly recycling strategies. In this context, direct regeneration has emerged as a promising approach for reclaiming LFP cathode materials, offering a streamlined pathway to restore their electrochemical functionality. We report an integrated regeneration protocol that simultaneously repairs the degraded crystal structure and reconstructs the damaged carbon coating in spent LFP. The regenerated cathode material had superfast lithium-ion diffusion kinetics and a stable cathode–electrolyte interface, giving a remarkable rate capability with specific capacities of 122 mAh g−1 at 5C and 106 mAh g−1 at 10C (1C = 170 mA g−1). It also maintained capacities of 110.7 mAh g−1 (5C) and 84.1 mAh g−1 (10C) after 400 cycles. It could be used in harsh environments and could be stably cycled at subzero temperatures (− 10 and − 20 °C) and in solid-state electrolyte batteries. Life cycle assessment combined with economic evaluation using the EverBatt model reveals that this direct regeneration approach has high economic and environmental benefits.