Lithium is a valuable resource. EV batteries have lots of it. Therefore EV batteries are valuable even after they stop working. Lithium is valuable because extracting it from naturally occurring salt deposits is a lot of work. These salt deposits are mostly not Lithium. We are talking trace amounts here. To extract it, you have to process vast amounts of brine. Boil of the water, separate it from other materials, etc…
I had always assumed that when a lithium battery didn't work any more, the lithium was somehow "depleted", or had been charged chemically somehow?
What happens in old batteries is the physical structure of the lithium metal is damaged so it does not function as well as a battery, but you can separate out the lithium from the old battery, melt it down and reform it into a new battery (or whatever else you want to do with lithium.)