The transportation sector plays a crucial role in addressing global environmental pollution challenges and the energy crisis. As a response to the increasing environmental pollution caused by greenhouse gas emissions, there is a gradual shift from internal combustion engines to electric motors in vehicles. One of the rapidly advancing fields in this transition is battery storage, with lithium-ion batteries (LiBs) being the predominant choice for electric vehicles. The optimal operating temperature range for cells typically falls between 20 °C and 45 °C, with performance deteriorating below 5 °C. Hence, the effectiveness of the battery relies significantly on the Battery Thermal Management System (BTMS). Air-cooled hybrid Battery Thermal Management Systems utilize lightweight and intricate models, resulting in lower parasitic power consumption. Air-cooled BTMSs have been widely adopted in the electric vehicle (EV) and hybrid electric vehicle (HEV) industries due to their compact size and high safety features, especially in demanding and high-temperature working environments. This review initially analyzes the mechanisms of battery heat generation and their impact on the powertrain system in electric vehicles, including thermal runaways and fire accidents. The use of air-cooled BTMSs is then explored, along with their advantages and disadvantages, through a review of their fundamental design and an evaluation of various design enhancements. The key findings and the results of the latest experimental, modeling, and simulation work on BTMSs are thoroughly examined. Additionally, the presented work provides a comprehensive analysis of hybrid cooling systems.