 Graphite is currently the state-of-the-art anode material for most of the commercial lithium ion batteries. Among different types of natural graphite, flake graphite has been recently recognized as one of the critical materials due to the predicted future market growth of lithium ion batteries for vehicular applications. Current status and future demand of flake graphite in the market are discussed. It was found that flake graphite could become a critical material in the near future for countries such as the United States and members of the European Union with no graphite production. Recycling of flake graphite from its different waste resources is proposed as a potential solution to meet the future demand of graphite. The current status of graphite anodes in the present recycling technologies of spent lithium ion batteries was reviewed. The limitation of current technologies and a new perspective towards the future concept of “battery recycling” were also pointed out. Challenges in recycling battery grade flake graphite from spent lithium ion batteries and possible research opportunities in this regard were introduced.