An electrified vehicle and method for estimating peak power of a battery system of the electrified vehicle are presented. In one exemplary implementation, the method includes receiving, at a controller of the electrified vehicle, measured current, voltage, and temperature of the battery system and determining, at the controller, operating parameters for the battery system based on the measured current, voltage, and temperature. An initial peak current at a start of a current prediction period for the battery system is determined, at the controller, based on the operating parameters, and an instantaneous peak current of the battery system is determined based on its initial peak current by performing voltage-limited extrapolation of resistances and open-circuit voltage (VLERO) of a battery model for the battery system. The battery system and an electric motor of the electrified vehicle are controlled, by the controller, based on the instantaneous peak current.