The effect of physical and chemical properties on the performance of both positive and negative electrodes is studied for lithium-ion (Li-ion) batteries. These properties include the lithium diffusivity in the active electrode material, the electrical conductivity of the electrode, and the reaction rate constant at electrode active sites. The specific energy and power of the cells are determined at various discharge rates for electrodes with different properties. In addition, this study is conducted across various cell design cases. The results reveal that at moderate discharge rates, lithium diffusivity in the active negative-electrode material has the highest impact on cell performance. The specific energy and power of the cell are improved ~11% by increasing the lithium diffusivity in the active negative-electrode material by one order of magnitude. Around 4% improvement in the cell performance is achieved by increasing the reaction rate constant at the active sites of either electrodes by one order of magnitude. Copyright © 2013 John Wiley & Sons, Ltd.