How do lithium batteries store and release electrical energy?

Lithium batteries store and release energy through the movement of lithium ions between two electrodes. During charging, an external current forces lithium ions to migrate from the cathode (typically a lithium metal oxide like lithium cobalt oxide) through a liquid electrolyte and embed themselves into the anode (usually graphite), a process called intercalation. Electrons travel through the external circuit simultaneously. During discharge, the process reverses spontaneously. Lithium ions move back from the anode through the electrolyte to the cathode, while electrons flow through the external circuit to power a device. The energy is stored in the chemical potential difference between the two electrode materials, and the voltage produced depends on the electrochemical properties of those specific materials.