Traditionally it has been assumed that battery thermal management systems should be designed to maintain the battery temperature around room temperature. That is not always true as lithium-ion battery (LIB) R&D is pivoting towards the development of high energy density and fast charging batteries. Therefore, it is necessary to have a comprehensive review of thermal considerations for LIBs targeted for high energy density and fast charging, i.e., the optimal thermal condition, thermal physics (heat transport and generation) inside the battery, and thermal management strategies. As the energy density and charge rate increases, the optimal battery temperature can shift to be higher than room temperature. In the first part of the review various sources of heat generation inside LIBs and various approaches to minimizing battery heat generation are summarized. The importance of heat of mixing due to ion diffusion during fast charging is also highlighted. To improve the temperature uniformity and avoid excessive internal temperature rise, heat transfer inside the battery needs to be enhanced, and reducing the thermal contact resistance between the electrodes and separator can significantly increase the effective thermal conductivity of batteries. In the second part of the review various challenges and latest developments related to thermal transport and properties of LIBs are discussed. Finally, a summary of latest advancement on smart control of internal temperature of LIBs is discussed as depending on the ambient temperature and the optimal temperature; the battery heat needs to be retained or dissipated to elevate or avoid temperature rise.