Although the lithium-ion batteries (LIBs) have been increasingly applied in consumer electronics, electric vehicles, and smart grid, they still face great challenges from the continuously improving requirements of energy density, power density, service life, and safety. To solve these issues, various studies have been conducted surrounding the battery design and management methods in recent decades. In the hope of providing some inspirations to the research in this field, the state of the art of design and management methods for LIBs are reviewed here from the perspective of process systems engineering. First, different types of battery models are summarized extensively, including electrical model and multi-physics coupled model, and the parameter identification methods are introduced correspondingly. Next, the model based battery design methods are reviewed briefly on three different scales, namely, electrode scale, cell scale, and pack scale. Then, the battery model based battery management methods, especially the state estimation methods with different model types are thoroughly compared. The key science and technology challenges for the development of battery systems engineering are clarified finally.