The rapid electrification of transportation has intensified the demand for high-performance lithium-ion batteries (LIBs), making advancements in materials, AI-driven optimization, and circular economy strategies crucial for the next generation of EV batteries. This review explores cutting-edge developments in LIB technology, focusing on advanced cathode and anode materials, solid-state electrolytes, and innovative battery architectures that enhance energy density, charging efficiency, and lifespan. Additionally, the integration of artificial intelligence (AI) in battery design, predictive maintenance, and manufacturing optimization is discussed, highlighting its role in improving battery performance and reliability. Furthermore, circular economy strategies, including advanced recycling technologies, second-life applications, and sustainable raw material sourcing, are examined as essential pathways toward reducing environmental impact and ensuring resource efficiency. Looking ahead, emerging trends such as solid-state batteries, AI-powered lifecycle management, and the integration of EV batteries with renewable energy systems are poised to revolutionize the energy storage landscape. This review underscores the necessity of interdisciplinary collaboration among researchers, industry leaders, and policymakers to drive sustainable innovations and achieve the next generation of LIBs for EVs.