There has been an intensive research and development focus on lithium-ion batteries, which have revolutionized the electric vehicle market due to the batteries’ high energy and power density, longer lifespan, and increased safety than compa-rable rechargeable battery technologies. The performance of lithium-ion batteries is achieved by packaging design, electrolyte, and electrodes material’s selection. This study focuses on cathode materials as they currently need to overcome criti-cal challenges. In fact, cathode materials affect energy density, rate capability and working voltage that led to the cathode currently costing twice as much as the anode. For this reason, this study reviews cathode materials for electric vehicle lithium-ion batteries under economic and environmental perspectives to optimize the batteries’ structures and properties. Findings reveal that presently there is no commercially installed battery that can satisfy both, economic and environmental concerns while offering an overall excellent performance.