In cooperation with the industrial project partners ACCUREC Recycling and UVR-FIA a recycling process specially dedicated to portable Li-ion batteries was developed combining a mechanical pretreatment with hydro- and pyrometallurgical process steps. Therefore not only the recovery of cobalt but also the recovery of all other battery components, especially of lithium was of interest. Besides the characterization and evaluation of all generated metallic material fractions, the focus of the research work was the development of a pyrometallurgical process step in an electric arc furnace for the carbo-reductive melting of the fine fraction extracted from spent Li-ion batteries. This fine fraction mainly consists of the cobalt and lithium containing electrode material. Since a selective pyrometallurgical treatment of the fine fraction for producing a cobalt alloy has not been done before, the proof of feasibility was the main aim.