The key role played by carbon dioxide in global temperature cycles has stimulated constant research attention on carbon capture and storage. Among the various options, lithium–carbon dioxide batteries are intriguing, not only for the transformation of waste carbon dioxide to value-added products, but also for the storage of electricity from renewable power resources and balancing the carbon cycle. The development of this system is still in its early stages and faces tremendous hurdles caused by the introduction of carbon dioxide. In this review, detailed discussion on the critical problems faced by the electrode, the interface, and the electrolyte is provided, along with the rational strategies required to address these problematic issues for efficient carbon dioxide fixation and conversion. We hope that this review will provide a resource for a comprehensive understanding of lithium–carbon dioxide batteries and will serve as guidance for exploring reversible and rechargeable alkali metal-based carbon dioxide battery systems in the future.