In this study, we report significant improvements in lithium-ion battery anodes cost and performance, by fabricating nano porous silicon (Si) particles from Si wafer sludge using the metal-assisted chemical etching (MACE) process. To solve the problem of volume expansion of Si during alloying/de-alloying with lithium ions, a layer was formed through nitric acid treatment, and Ag particles were removed at the same time. This layer acts as a core-shell structure that suppresses Si volume expansion. Additionally, the specific surface area of Si increased by controlling the etching time, which corresponds to the volume expansion of Si, showing a synergistic effect with the core-shell. This development not only contributes to the development of high-capacity anode materials, but also highlights the possibility of reducing manufacturing costs by utilizing waste Si wafer sludge. In addition, this method enhances the capacity retention rate of lithium-ion batteries by up to 38 %, marking a significant step forward in performance improvements.