This review discusses important scientific progress, problems, and prospects of lignin-based materials in the field of rechargeable batteries. Lignin, a component of the secondary cell wall, is considered a promising source of biomass. Compared to cellulose, which is the most extensively studied biomass material, lignin has a competitive price and a variety of functional groups leading to broad utilization such as adhesive, emulsifier, pesticides, polymer composite, carbon precursor, etc. The lignin-based materials can also be applied to various components in rechargeable batteries such as the binder, separator, electrolyte, anode, and cathode. This review describes how lignin-based materials are adopted in these five components with specific examples and explains why lignin is attractive in each case. The electrochemical behaviors including charge–discharge profiles, cyclability, and rate performance are discussed between lignin-based materials and materials without lignin. Finally, current limitations and future prospects are categorized to provide design guidelines for advanced lignin-based materials.