<p>Smart sensors have recently been employed to enhance the longevity and performance of lithium-ion rechargeable batteries (LiBs) by accurately monitoring their health and safety status. This review article explores the application of smart sensors in LiBs, alongside a comprehensive analysis of the latest advancements in high-performance anode, cathode, and electrolyte materials. Specifically, the combination of soccerene-like Li₄Ti₅O₁₂/C as an anode, nickel-rich ternary layered oxide (AA-NCM-NC-0.50) as a cathode, and Li₁₀Sn_0.95P₂S_11.9−xO_x as a sulfide solid electrolyte is proposed as a promising configuration to address current challenges in Li-ion fuel cells. Additionally, the article discusses the prospects and challenges associated with smart sensors and electrode/electrolyte materials, emphasizing their potential to revolutionize LiBs. These advancements highlight the significant role of smart sensors and innovative materials in achieving safer, more efficient, and longer-lasting lithium-ion batteries. </p> Graphical Abstract <p></p>