Recent advances within battery technology have opened new possibilities for the application of high power and high energy lithium-ion batteries. The present consortium includes a broad spectre of companies related to battery technology, and leading knowledge institutions including international experts from Germany, Sweden and Spain. Common for the applications are the highest industrial requirements for lifetime and reliability, where the value created is highly dependent on battery performance. The current project team bridge all the way from fundamental battery science to battery management and diagnostics systems, power electronics for grid connection, time shifting of electrical energy consumption and motion power in electric vehicles. A high cost of the initial investment of the batteries is a common feature; hence the lifetime and degradation rate is central for the economic feasibility. The project extends the developed battery cell degradation modelling and characterization into full scale battery system degradation modelling and characterization. The common challenge is to model and characterize the key success parameter – the expected battery lifetime in the givenapplication. The research groups included in this project proposal represent the leading laboratories in Denmark, within this field of research, and the strong industrial partners ensure firm links to the end-applications and technology. The goal is to raise the research profile of the involved knowledge partners to an internationally recognised level and to establish close relations to the involved international experts in industry and academia.