The growing use of lithium-ion batteries (LIBs) in electric vehicles, portable electronic devices, and energy storage applications has resulted in a continuous increase in spent battery generation. This study investigated the recovery of multiple valuable metals from LIBs black mass (BM) using a hydrometallurgical process, and assess its environmental impact. The BM was subjected to leaching, followed by sequential precipitation, pH adjustment, and subsequent evaporation for lithium (Li) concentration. The leaching efficiencies of Al, Cu, Co, Li, Mn, and Ni ranged from 87–99%. Approximately 57% of the initial Li content remained in the Li-rich solution after sequential precipitation. According to the environmental impact assessment using SimaPro 10.2 with the ReCiPe 2016 Midpoint (H) method, the leaching and precipitation stages were the major contributors to the overall environmental impacts. Compared with primary production, the proposed recycling process as a secondary production route showed promising environmental benefits for the assessed impact categories of global warming potential, terrestrial ecotoxicity, and human non-carcinogenic toxicity compared with primary production. However, the recovered materials consisted of mixed-metal products. Consequently, further purification and process optimization are required to achieve higher-value applications. This study provides technical and environmental insights to support the further optimization and development of BM recycling processes prior to industrial implementation, thereby contributing to the transition toward a circular economy.