Significance: The worldwide shift towards renewable energy is creating unprecedented demand for critical metals such as lithium, cobalt, and rare earth elements. This rise in demand exerts pressure on primary mineral supplies and raises profound concerns over supply chain security and environmental sustainability. This dependency generates a substantial environmental footprint and exposes economies to geopolitical vulnerabilities and supply chain disruptions, making dependence on primary extraction an unsustainable long-term strategy. Recycling "urban minerals"—secondary resources in end-of-life products—has become essential for securing strategic resources and building a green, closed-loop economy. However, the relationship between the recycling potential of urban minerals and the practical challenges is unclear. Therefore, to ensure the long-term sustainability of the energy transition, we must systematically assess how we can recycle these urban minerals in energy industries and identify the associated technological, economic, and policy challenges. Progress: This study systematically reviewed recent research on recycling urban minerals during the energy transition. It focused on three key areas: the consumption and recycling potential of key metals, the current status of recycling technology, and the factors that influence recycling. First, this study examined the demand for key metals used in the wind power, photovoltaic, and energy storage industries. It also highlighted the valuable recycling potential found in decommissioned waste streams. Second, this study examined recycling methods for typical waste products, such as composite wind turbine blades, photovoltaic modules, and waste lithium-ion batteries. The study compared hydrometallurgy, pyrometallurgy, and mechanical-physical methods based on their technical maturity, recovery efficiency, and environmental impact. Finally, this study examined the internal and external factors that hinder efficient recycling. Key challenges included material complexity, such as the strong adhesion of multiple layers in PV modules and the variety of materials in lithium-ion batteries. Other challenges include high recovery and compliance costs, poor industrial chain synergy, and weak policies and regulations, such as fragmented Extended Producer Responsibility (EPR) schemes. Conclusions and Prospects: Recent research shows a significant theoretical gap between the efficient recycling of urban minerals and their potential in the emerging energy sector. Existing recycling technologies face challenges in processing low-value composite materials, preventing secondary pollution, and achieving economic viability. Concurrently, numerous end-of-life products flow through informal channels. This results in significant loss of valuable resources and poses severe environmental and health risks due to unregulated processing. Future research should prioritize overcoming key technological challenges, such as developing low-cost depolymerization technologies for composites and flexible, automated dismantling processes for various battery types. Moreover, governments and industries must implement comprehensive lifecycle traceability systems, including mandatory EPR schemes and "digital passports" for material accountability. Optimizing industrial layouts, enhancing economic incentives, and promoting product eco-design are essential supporting strategies. Ultimately, these initiatives will improve the measurable contribution of urban minerals to the critical metal supply chain, which is essential for securing national strategic resources and promoting green, low-carbon development.