An 18650 lithium ion cell was evaluated using dynamic stress test (DST) protocol for cycle life study. Reference performance tests were applied every 60 DST cycles to quantify capacity fade and peak power capability (PPC) degradation with cycles to the end of life. A quantitative incremental capacity analysis (ICA) was applied to identify extrinsic and intrinsic contributions to capacity fading, whereas the open circuit voltage (OCV) measurements were utilized to determine the correct state of charge (SOC) in order to accurately correlate the capacity fade with SOC. The analysis also helps us identify that cell polarization resistance change in the cycles is the primary culprit that bifurcates to both extrinsic and intrinsic origins in capacity fade and PPC degradation. This analysis allows us to develop better understanding in predicting battery performance and life in the rechargeable lithium batteries. (c) 2006 Elsevier B.V. All rights reserved.