Lithium-ion batteries are well-suited for fully electric and hybrid electric vehicles due to their high specific energy and energy density relative to other rechargeable cell chemistries. However, these batteries have not been widely deployed commercially in these vehicles yet due to safety, cost, and poor low temperature performance, which are all challenges related to battery thermal management. In this paper, a critical review of the available literature on the major thermal issues for lithium-ion batteries is presented. Specific attention is paid to the effects of temperature and thermal management on capacity/power fade, thermal runaway, and pack electrical imbalance and to the performance of lithium-ion cells at cold temperatures. Furthermore, insights gained from previous experimental and modeling investigations are elucidated. These include the need for more accurate heat generation measurements, improved modeling of the heat generation rate, and clarity in the relative magnitudes of the various thermal effects observed at high charge and discharge rates seen in electric vehicle applications. From an analysis of the literature, the requirements for lithium-ion thermal management systems for optimal performance in these applications are suggested, and it is clear that no existing thermal management strategy or technology meets all these requirements. (C) 2011 The Electrochemical Society. [DOI: 10.1149/1.3515880] All rights reserved.