This article provides an overview of the recent developments in 2D metal carbide/nitride (MXene) nanocomposites for lithium-based batteries to solve the continuing issues with energy storage. The results of numerous investigations on 2D-MXene show that MXene is flexible; mechanically strong; thermally and chemically stable; either hydrophilic, hydrophobic, or an admixture of both; and possesses excellent electrical conductivity and large surface area. The production processes, properties, and applications of 2D-MXene for energy storage are critically reviewed. We discovered that 2D-MXene is a promising lithium-ion battery electrode if its restacking issues are overcame. Moreover, hydroxylation and fluorination bonds in MXene inhibit the easy diffusion of lithium ions, leading to a decrease in battery capacity. Furthermore, the delamination of 2D-MXene layers, the tuning of the interlayer spacing, the introduction of vacancies, and surface modification are effective methods to enhance the performance of MXene for electrochemical applications. In addition, the choice of synthetic route and volume fraction are among the determining factors dictating the electrical conductivity of 2D-MXene-based composites. By considering the remarkable properties of 2D-MXene and 2D-MXene-based nanocomposites for energy storage, this study recommends their commercial production for lithium-ion battery anode electrodes.