This review summarizes the current state-of-the art electrode materials used for high-capacity lithium-ion-based batteries and their significant role towards revolutionizing the electrochemical energy storage landscape in the area of consumer electronics, transportation and grid storage application. We discuss the role of nanoscale effects on the electrochemical performance of high-capacity battery electrode materials. Decrease in the particle size of the primary electrode materials from micron to nanometre size improves the ionic and electronic diffusion rates significantly. Nanometre-thick solid electrolyte (such as lithium phosphorous oxynitride) and oxides (such as Al₂O₃, ZnO, TiO₂ etc.) material coatings also improve the interfacial stability and rate capability of a number of battery chemistries. We elucidate these effects in terms of different high-capacity battery chemistries based on intercalation and conversion mechanism.