Rechargeable lithium-ion batteries store energy as chemical energy in electrode materials during charge and can convert the chemical energy into electrical energy when needed. Tremendous attention has been paid to screen electroactive materials, to evaluate their structural integrity and cycling reversibility, and to improve the performance of electrode materials. This review discusses recent advances in performance enhancement of both anode and cathode through nanoengineering active materials and applying surface coatings, in order to effectively deal with the challenges such as large volume variation, instable interface, limited cyclability and rate capability. We also introduce and discuss briefly the diversity and new tendencies in finding alternative lithium storage materials, safe operation enabled in aqueous electrolytes, and configuring novel symmetric electrodes and lithium-based flow batteries.