Methods and systems are described of managing a battery system. The battery system including at least one battery cell and one or more sensors configured to measure a temperature of the at least one battery cell. The method includes receiving a measurement of the temperature of the at least one battery cell, estimating an open circuit potential of the at least one battery cell, estimating a capacity fade of the at least one battery cell based on the open circuit potential of the at least one battery cell and a ratio of a change in the open circuit potential relative to a change in the temperature of the at least one battery cell, and regulating at least one of charging or discharging of the at least one battery cell based on the estimation of the capacity fade.