The disclosed embodiments provide a system that manages use of a battery in a portable electronic device. During operation, the system uses a reference electrode in the battery to monitor an anode potential of an anode in the battery during charging of the battery in the portable electronic device. If the anode potential falls below an anode potential threshold, the system modifies a charging technique for the battery to extend a cycle life of the battery. For example, the system may reduce a charge current of the battery if the anode potential falls below the anode potential threshold to prevent degradation caused by a negative anode potential during charging of the battery.