Rechargeable lithium-air batteries have ultra-high theoretical capacities and energy densities, allowing them to be considered as one of the most promising power sources for next-generation electric vehicles. The technology has been honed in various ways over the years, but it still experiences critical issues that need to be addressed in order to make it commercially viable. For instance, its practical capacity, round-trip efficiency, and cycling life are among the factors that need to be improved. In this review, the developments of this type of battery are presented. In particular, the system levels of design that encompass the optimization of the battery’s electrolyte and electrodes are discussed. More importantly, this report provides perspectives on achieving the desired battery performance to meet the demands of commercial viability.