Lithium, a silver-white alkali metal, with significantly high energy density, has been exploited for making rechargeable lithium-ion batteries (LiBs). They have become one of the main energy storage solutions in modern electric cars (EVs). Cobalt, nickel, and manganese are three other key components of LiBs that power electric vehicles (EVs). Neodymium and dysprosium, two rare earth metals, are used in the permanent magnet-based motors of EVs. The operation of EVs also requires a high amount of electricity for recharging their LiBs. Thus, the CO2 emission is reduced during the operation of an EV if the recharged electricity is generated from non-carbon sources such as hydroelectricity, solar energy, and nuclear energy. LiBs in EVs have been pushed to the limit because of their limited storage capacity and charge/discharge cycles. Batteries account for a substantial portion of the size and weight of an EV and occupy the entire chassis. Thus, future LiBs must be smaller and more powerful with extended driving ranges and short charging times. The extended range and longevity of LiBs are feasible with advances in solid-state electrolytes and robust electrode materials. Attention must also be focused on the high-cost, energy, and time-demand steps of LiB manufacturing to reduce cost and turnover time. Solid strategies are required to promote the deployment of spent LiBs for power storage, solar energy, power grids, and other stationary usages. Recycling spent LiBs will alleviate the demand for virgin lithium and 2.6 × 1011 tons of lithium in seawater is a definite asset. Nonetheless, it remains unknown whether advances in battery production technology and recycling will substantially reduce the demand for lithium and other metals beyond 2050. Technical challenges in LiB manufacturing and lithium recycling must be overcome to sustain the deployment of EVs for reducing CO2 emissions. However, potential environmental problems associated with the production and operation of EVs deserve further studies while promoting their global deployment. Moreover, the combined repurposing and remanufacturing of spent LiBs also increases the environmental benefits of EVs. EVs will be equipped with more powerful computers and reliable software to monitor and optimize the operation of LiBs.