Crop production faces challenges in achieving high fertilizer use efficiency. To address this issue, slow-release fertilizers (SRFs) have emerged as effective solutions to minimize nutrient losses caused by leaching, runoff, and volatilization. In addition, replacing petroleum-based synthetic polymers with biopolymers for SRFs offers substantial benefits in terms of sustainability of crop production and soil quality preservation, as biopolymers are biodegradable and environmentally friendly. This study focuses on modifying a fabrication process to develop a bio-composite comprising biowaste lignin and low-cost montmorillonite clay mineral for encapsulating urea to create a controllable release fertilizer (CRU) with a prolonged nitrogen release function. CRUs containing high N contents of 20 to 30 wt.% were successfully and extensively characterized using X-Ray diffraction (XRD), Fourier-transform infrared spectroscopy (FTIR), and Scanning Electron Microscopy (SEM). The results showed that the releases of N from CRUs in water and soil extended to considerably long periods of 20 and 32 days, respectively. The significance of this research is the production of CRU beads that contain high N percentages and have a high soil residence period. These beads can enhance plant nitrogen utilization efficiency, reduce fertilizer consumption, and ultimately contribute to agricultural production.