The capacity fade of Sony 18650 Li-ion cells increases with increase in temperature. After 800cycles, the cells cycled at RT and 45°C showed a capacity fade of 30 and 36%, respectively. The cell cycled at 55°C showed a capacity loss of about 70% after 490cycles. The rate capability of the cells continues to decrease with cycling. Impedance measurements showed an overall increase in the cell resistance with cycling and temperature. Impedance studies of the electrode materials showed an increased positive electrode resistance when compared to that of the negative electrode for cells cycled at RT and 45°C. However, cells cycled at 50 and 55°C exhibit higher negative electrode resistance. The increased capacity fade for the cells cycled at high temperatures can be explained by taking into account the repeated film formation over the surface of anode, which results in increased rate of lithium loss and also in a drastic increase in the negative electrode resistance with cycling.