A effective method for the precision electrochemical removal of thin film nanostructures from LCD panels using a gear-shaped electrode tool has been developed. This ultra-precise process effectively removes defective Indium-Tin-Oxide layers allowing LCD panels to be returned to the production line and significantly reduces costs. In the current experiment a 7th Generation TFT-LCD panel was used. A high rotational speed of the gear-shaped negative electrode elevates discharge mobility and improves the removal effect. Pulsed direct current can improve the effect of dregs discharge and is advantageous when combined with a fast workpiece feed rate. A fast feed combined with a high current flow results in very effective removal of the color filter layer. A negative electrode of large diameter with a small edge radius provides higher current density and also improves the removal affect. This novel design using electrochemical removal as a precision recycling process for removing ITO layers from LCD panels is clean, effective and very fast.