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The physical and chemical properties of electrolytes have significant impacts on battery performance. The concept of nanoconfinement has been proposed as an innovative modification strategy to address challenges related to the thermal stability, ion transport efficiency, and electrochemical stability of electrolytes. This involves confining electrolytes within nanoscale or sub-nanoscale spaces, leading to improvements in their physicochemical properties, such as increased boiling points, optimized ion migration, regulated ion concentration gradients, effective ion sieving, accelerated charge transfer, and suppressed side reactions. In this perspective article, we highlight the substantial potential of these approaches for extending the cycle life, broadening operational conditions, and enhancing the safety of lithium-based batteries. Additionally, the challenges and future research directions in this area are discussed.