With the global energy demand on the rise, lithium-ion batteries (LIBs) have attracted more attention as they play a pivotal role in electrification revolution. This research intends to investigate how does the application of nanotechnology have an impact on the current commercialized LIBs among electric vehicles through different components such as cathode, anode and electrolyte of the battery itself under the carbon neutral context in the next decade. The major trends for cathode material are NMC/NCA though efforts have been made to reduce the reliance on cobalt; anode material is mainly graphite-based, and the mainstream electrolyte remains in liquid organic solvent thats electrochemically unstable. Through current research findings presented in different research, a summary of the current progress made in the nanotechnology field for better battery performance will be generated, and a proposed future research focus and innovations with lingering challenges like energy density and sustainability issues for battery recycling will be carried out.