Rechargeable Li-CO2 batteries provide a promising new approach for carbon capture and energy storage technology. However, their practical application is limited by many challenges despite much progress in this technology. Recent development in Li-CO2 batteries is presented. The reaction mechanism with an air cathode, operating temperatures used, electrochemical performance under different CO2 concentrations, stability of the battery in different electrolytes, and utilization of different cathode materials were emphasized. At last, challenges and perspectives were also present- ed. This review provides a deep understanding of Li-CO2 batteries and offers important guidelines for developing reversible and high efficiency Li-CO2 batteries.