The formidable challenges for developing a safe, low-cost, high-capacity, and high-power battery necessitate employing advanced tools that are capable of directly probing the key electronic states relevant to battery performance. Synchrotron based soft X-ray spectroscopy directly measures both the occupied and unoccupied states in the vicinity of the Fermi level, including transition-metal-3d and anion-p states. This article presents the basic concepts on how fundamental physics in electronic structure could provide valuable information for lithium-ion battery applications. We then discuss some of our recent studies on transition-metal oxide based cathodes, silicon based anode, and solid-electrolyte-interphase through soft X-ray absorption and emission spectroscopy. We argue that spectroscopic results reveal the evolution of electronic states for fingerprinting, understanding, and optimizing lithium-ion battery operations.