Lithium-ion batteries have become a crucial factor in the widespread adoption of electric vehicles, thanks to their high energy density and seamless integration with powertrain systems. However, their performance is highly dependent on operating temperature, necessitating an efficient thermal management system to ensure optimal efficiency, safety, cost-effectiveness, and longevity, particularly in high-capacity Li-ion batteries. This review provides a comprehensive analysis of heat generation mechanisms and thermal modeling in lithium-ion batteries, along with various thermal management systems. It examines the impact of extreme conditions on battery performance, including thermal runaway and aging. Ultimately, it aims to establish a comprehensive framework for future research and development in battery thermal management systems.