Systems and Applications

    State of Charge and State of Health Explained

    8 min · Systems and Applications

    Dr. Simon Engelke · Founder and Chair, Battery AssociatesPublished

    Key takeaways

    • State of charge is the ratio of charge currently available to the charge the cell can hold today, so it is measured against present capacity rather than the capacity the cell had when new.
    • No sensor measures state of charge directly; every figure a user sees is an estimate produced from voltage, current, temperature and a model.
    • State of health has no single agreed definition, and capacity-based and resistance-based figures can diverge sharply in the same cell.
    • LFP's flat voltage curve makes voltage-based estimation unreliable, so LFP systems depend on coulomb counting and need periodic full charges to correct drift.
    • The EU battery passport applies from 18 February 2027 to electric vehicle, light means of transport and industrial batteries above 2 kWh, and it turns state of health from an internal BMS variable into a reportable figure.

    There is no state of charge sensor. Nothing inside a cell reports how full it is. Every percentage figure a driver, an operator or a phone user has ever seen was produced by a model taking voltage, current and temperature as inputs and guessing. Understanding batteries at a professional level starts with taking that seriously.

    The two definitions, stated properly

    State of charge is the charge currently extractable from a cell, divided by the charge the cell can hold in its present condition, expressed as a percentage. The denominator is present capacity, not nameplate capacity. A cell that has faded to 80 per cent of its original capacity still reaches 100 per cent state of charge when it is full.

    State of health is the comparison between present condition and beginning-of-life condition. It comes in two forms that are not interchangeable:

    Capacity-based state of health is present usable capacity divided by rated or beginning-of-life capacity. This is what warranties are usually written against.

    Resistance-based state of health tracks the rise in internal resistance, often measured as direct current internal resistance at a defined pulse and temperature. This is what determines whether the pack can still deliver its rated power.

    A cell can hold 88 per cent of its capacity while its resistance has risen by 60 per cent. In a power-limited application, that cell has failed. In an energy-limited application, it has years left. Quoting a single state of health number without saying which definition it uses is one of the most common errors in the field.

    How state of charge is estimated

    A BMS estimates state of charge by combining methods: coulomb counting carries the estimate minute to minute, open-circuit voltage lookup corrects it after rests, and model-based filters such as the extended Kalman filter fuse both continuously. No method measures it directly.

    MethodHow it worksAccuracy in practiceMain limitation
    Coulomb countingIntegrates measured current over timeHigh over short periodsDrifts without correction, because current sensor error accumulates and there is no absolute reference
    Open-circuit voltage lookupMaps a rested voltage to state of charge using a stored curveGood on sloped chemistriesRequires relaxation time, and fails where the voltage curve is flat
    Model-based with a filterEquivalent-circuit model plus an extended Kalman filter or similar, fusing current and voltageBest general-purpose accuracyNeeds parameterisation across temperature and age, and computational headroom
    Impedance-basedUses the frequency response of the cellUseful diagnosticallyNeeds excitation hardware, mostly a laboratory and increasingly an onboard diagnostic method
    Data-drivenTrained on fleet or laboratory dataStrong within the training distributionDegrades outside it, and is hard to certify

    Production systems combine methods. Coulomb counting carries the estimate between corrections, and an open-circuit voltage reading after a long rest resets it. The interesting engineering question is always what happens between corrections.

    Why LFP is the hard case

    The value of an open-circuit voltage lookup depends on the slope of the voltage curve. A steep curve means a small voltage error translates to a small state of charge error. LFP's curve is close to flat between roughly 20 and 90 per cent state of charge, so a measurement error of a few millivolts can correspond to tens of percentage points of state of charge.

    Consequences worth knowing before you specify an LFP system:

    The estimate relies heavily on coulomb counting, so current sensor quality and calibration matter more than they would in an NMC system.

    Drift accumulates. A system that never reaches a full or empty endpoint has no opportunity to reset, so LFP home batteries and grid systems are usually programmed to complete a full charge periodically for calibration rather than for energy reasons.

    Cell-to-cell divergence is harder to detect early, because the voltage differences that would reveal it are small in the flat region.

    This is a case where the safety and cycle-life advantages of LFP come with a control problem attached, and it is the sort of trade-off that datasheets do not show.

    Gross capacity, net capacity and what the display shows

    Manufacturers reserve buffer at the top and bottom of the cell range. The top buffer protects calendar life by keeping cells away from their highest potential. The bottom buffer prevents over-discharge and gives the vehicle or system reserve.

    So there are three different numbers in circulation for any pack: gross or nameplate capacity at cell level, net usable capacity after buffers, and the displayed percentage which maps the net window to a 0 to 100 scale for the user. A pack advertised at 82 kWh gross with 77 kWh usable will show 100 per cent at a cell state of charge somewhere below full. When comparing vehicles or storage products, ask which number you are being quoted.

    Measuring state of health without taking the pack apart

    The difficulty is that a clean capacity measurement needs a wide, slow, temperature-controlled cycle, and real assets rarely provide one. Several approaches work in the field:

    Incremental capacity analysis differentiates capacity with respect to voltage during a slow cycle. Peaks in the resulting curve correspond to phase transitions in the electrode materials, and their movement and shrinkage indicate which degradation mode is running. Differential voltage analysis does the reverse and is often more useful on flat-curve chemistries.

    Partial-cycle capacity estimation fits a model to segments of real operating data rather than requiring a full cycle.

    Resistance tracking through routine pulses, which most systems already produce during normal operation, gives a continuous power-capability signal.

    The diagnostic value of these methods is that they distinguish loss of lithium inventory from loss of active material at each electrode. That distinction tells you whether the pack is ageing in a way that will continue linearly or in a way that is about to accelerate.

    The reporting requirement changes the stakes

    State of health used to be an internal variable that manufacturers could define as they wished. Regulation (EU) 2023/1542 changes that in two steps. Since 18 August 2024, Article 14 has required the battery management system of stationary storage, light means of transport and electric vehicle batteries to hold readable data on state of health and expected lifetime. From 18 February 2027, the battery passport applies to electric vehicle, light means of transport and industrial batteries above 2 kWh, with state of health and durability data among the Annex XIII content. As of mid-2026 that date stands, although the delegated and implementing acts specifying the passport's technical details are still being finalised. That has two effects worth planning for.

    Definitions become contestable. If two manufacturers report state of health on different bases, buyers, insurers and second-life purchasers will notice, and the comparison will be made whether or not it is fair.

    Second-life valuation gets a data foundation. A repurposer who can read a documented degradation history rather than testing every module changes the economics of second life considerably.

    If you are specifying a system today with a service life running past 2027, ask the supplier how they define state of health, at what temperature and rate they measure it, and what they will be able to report.

    Informational and educational content only. Not professional, financial, legal, or engineering advice.

    Frequently asked questions

    What is the difference between state of charge and depth of discharge?

    State of charge is how full the cell is now, expressed as a percentage of present usable capacity. Depth of discharge is how much of that capacity a given cycle removes. A cycle running from 90 to 20 per cent state of charge has a depth of discharge of 70 per cent.

    How does a BMS know the state of charge?

    It estimates it. Coulomb counting integrates measured current over time, open-circuit voltage lookup infers charge from a rested voltage, and model-based methods combine both with a cell model and a filter such as an extended Kalman filter to correct drift.

    What state of health counts as end of life?

    Convention rather than physics. Eighty per cent of original capacity is the common threshold for electric vehicle traction batteries, but stationary storage warranties often specify a different figure, and resistance-based criteria are used where power matters more than energy.

    Why does my electric vehicle show 100 per cent when the battery is not full?

    The displayed figure maps to the net usable window the manufacturer allows, not the gross capacity of the cells. Buffers at both the top and bottom protect calendar life and give the pack margin, so a displayed 100 per cent typically sits below the cells' true full charge.

    Sources

    • Plett, G. L. (2004). Extended Kalman filtering for battery management systems of LiPB-based HEV battery packs, Parts 1 to 3. Journal of Power Sources, 134(2), 252-292. https://doi.org/10.1016/j.jpowsour.2004.02.031
    • Plett, G. L. (2015). Battery Management Systems, Volume 2: Equivalent-Circuit Methods. Artech House.
    • Birkl, C. R., Roberts, M. R., McTurk, E., Bruce, P. G. and Howey, D. A. (2017). Degradation diagnostics for lithium ion cells. Journal of Power Sources, 341, 373-386. https://doi.org/10.1016/j.jpowsour.2016.12.011
    • Dubarry, M., Truchot, C. and Liaw, B. Y. (2012). Synthesize battery degradation modes via a diagnostic and prognostic model. Journal of Power Sources, 219, 204-216. https://doi.org/10.1016/j.jpowsour.2012.07.016
    • Regulation (EU) 2023/1542 on batteries and waste batteries, Article 14 and Annex XIII (battery passport data). Official Journal of the European Union, L 191, 28 July 2023.

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