Energy consumption is a critical element in human evolution, and rapid advances in science and technology necessitate adequate energy. As human society evades, the advancement of energy storage components has become critical in addressing societal challenges. Lithium‐ion batteries (LIBs) are promising candidates for future extensive use as optimal energy storage devices. However, the current limitations of LIBs pose a challenge to their continued dominance. Researchers are constantly exploring new materials to enhance the performance of LIBs, and carbon fiber (CF) is a dominant contender in this pursuit. The high electrical conductivity of carbon‐based materials benefits the battery system by facilitating efficient electron transfer and improving overall performance. CF‐based materials provide enhanced energy storage capacity and cycling stability in LIBs. Progress in carbon‐based materials has resulted in electrodes with increased surface areas, enabling greater rates of charging and discharging. In addition, the exceptional corrosion resistance of CF ensures the durability and robustness of LIBs. A comprehensive review is carried out on the correlation between the material's structure and its electrochemical performance, with a special emphasis on the uses of pure carbon fibers, transition metal oxides, sulfides, and MXene carbon‐based transition metal compounds in LIBs.