<p>This review provides an in-depth exploration of recent advancements in lithium-ion battery (LIB) technology, specifically focusing on graphene-based anode materials and lithium iron phosphate (LiFePO₄) cathodes. The transition from conventional graphite anodes to graphene is emphasized, highlighting its theoretical specific capacity of 744 mAh g⁻¹, which is nearly double that of graphite. The review critically examines the challenges associated with graphene’s use, such as its tendency to aggregate and issues related to its volumetric expansion and low electron mobility. Strategies to address these challenges, including chemical modifications and hybrid material formations, are discussed in detail. The role of LiFePO₄ cathodes in enhancing energy density and ensuring safety, especially for electric vehicle applications, is also explored. Furthermore, modifications to electrolytes, including the incorporation of solid-state and gel electrolytes, are presented as solutions to improve the thermal stability and safety of LIBs. The review also investigates the future prospects of next-generation batteries, such as lithium-sulfur (Li-S) and lithium-air batteries, which offer potential for significantly higher energy densities. Overall, the review underscores the critical advancements and challenges that need to be addressed to enhance the efficiency, safety, and sustainability of LIBs, with a special focus on the electrolyte modifications that are key to achieving these goals.</p>