As hybrid and electric vehicle technologies continue to advance, car manufacturers have begun to employ lithium ion batteries as the electrical energy storage device of choice for use in existing and future vehicles. However, to ensure batteries are reliable, efficient, and capable of delivering power and energy when required, an accurate determination of battery performance, health, and life prediction is necessary. This paper provides a review of battery prognostics and health management (PHM) techniques, with a focus on major unmet needs in this area for battery manufacturers, car designers, and electric vehicle drivers. A number of approaches are presented that have been developed to monitor battery health status and performance, as well as the evolution of prognostics modeling methods. The goal of this review is to render feasible and cost effective solutions for dealing with battery life issues under dynamic operating conditions. (C) 2014 Elsevier B.V. All rights reserved.