In lithium-ion batteries, nanocrystalline intermetallic alloys, nanosized composite materials, carbon nanotubes, and nanosized transition-metal oxides are all promising new anode materials, while nanosized LiCoO2, LiFePO4, LiMn2O4, and LiMn2O4 show higher capacity and better cycle life as cathode materials than their usual larger-particle equivalents. The addition of nanosized metal-oxide powders to polymer electrolyte improves the performance of the polymer electrolyte for all solid-state lithium rechargeable batteries. To meet the challenge of global warming, a new generation of lithium rechargeable batteries with excellent safety, reliability, and cycling life is needed, i.e., not only for applications in consumer electronics, but especially for clean energy storage and for use in hybrid electric vehicles and aerospace. Nanomaterials and nanotechnologies can lead to a new generation of lithium secondary batteries. The aim of this paper is to review the recent developments on nanomaterials and nanotechniques used for anode, cathode, and electrolyte materials, the impact of nanomaterials on the performance of lithium batteries, and the modes of action of the nanomaterials in lithium rechargeable batteries.