This review provides a comprehensive examination of the current state and future prospects of anode materials for lithium-ion batteries (LIBs), which are critical for the ongoing advancement of energy storage technologies. The paper discusses the fundamental principles governing the operation of LIBs, with a focus on the electrochemical performance of various anode materials, including graphite, silicon, tin, and transition metal oxides. Each material’s theoretical capacity, cycle life, and structural stability are analyzed, highlighting the intrinsic challenges such as volumetric expansion, formation of the solid-electrolyte interphase (SEI), and degradation mechanisms that limit their practical application. The review also explores novel materials and composite approaches aimed at overcoming these limitations, such as the incorporation of nanostructured materials, doping strategies, and the development of hybrid anode systems. The integration of advanced characterization techniques and computational modeling is emphasized as crucial for understanding the complex interactions at the nanoscale and for guiding the design of next-generation anodes with enhanced performance metrics. Despite significant progress, the paper identifies several key challenges that remain, including the need for improved safety, higher energy density, and cost-effective manufacturing processes. The discussion extends to emerging trends and potential future directions in the field, such as the exploration of non-lithium-based systems and the development of solid-state batteries. The review concludes by addressing the critical need for continued interdisciplinary research efforts to drive innovation and achieve the commercialization of high-performance anode materials for LIBs.