Efficient control of electrified powertrains requires accurate estimation of the power capability of the battery for the next few seconds into the future. When implemented in a vehicle, the power estimation is part of a control loop that may contain several networked controllers which introduces time delays that may jeopardize stability. In this article, we present and evaluate an adaptive power estimation method that robustly can handle uncertain health status and time delays. A theoretical analysis shows that stability of the closed loop system can be lost if the resistance of the model is under-estimated. Stability can, however, be restored by filtering the estimated power at the expense of slightly reduced bandwidth of the signal. The adaptive algorithm is experimentally validated in lab tests using an aged lithium-ion cell subject to a high power load profile in temperatures from −20 to +25 °C. The upper voltage limit was set to 4.15 V and the lower voltage limit to 2.6 V, where significant non-linearities are occurring and the validity of the model is limited. After an initial transient when the model parameters are adapted, the prediction accuracy is within ± 2 % of the actually available power.