The following equations exemplify the chemistry (left to right: discharging, right to left: charging).

The negative electrode half-reaction for the graphite is

{\displaystyle {\ce {LiC6 <=> C6 + Li+ + e^-}}}

The positive electrode half-reaction in the lithium-doped cobalt oxide substrate is

{\displaystyle {\ce {CoO2 + Li+ + e- <=> LiCoO2}}}

The full reaction being

{\displaystyle {\ce {LiC6 + CoO2 <=> C6 + LiCoO2}}}

The overall reaction has its limits. Overdischarging supersaturates lithium cobalt oxide, leading to the production of lithium oxide, possibly by the following irreversible reaction:

{\displaystyle {\ce {Li+ + e^- + LiCoO2 -> Li2O + CoO}}}

Overcharging up to 5.2 volts leads to the synthesis of cobalt (IV) oxide, as evidenced by x-ray diffraction:

{\displaystyle {\ce {LiCoO2 -> Li+ + CoO2 + e^-}}}

The transition metal in the positive electrode, cobalt (Co), is reduced from Co4+ to Co3+ during discharge, and oxidized from Co3+  to Co4+ during charge.

The cell’s energy is equal to the voltage times the charge. Each gram of lithium represents Faraday’s constant/6.941, or 13,901 coulombs. At 3 V, this gives 41.7 kJ per gram of lithium, or 11.6 kWh per kilogram of lithium. This is slightly more than the heat of combustion of gasoline; however, lithium-ion batteries as a whole are still significantly heavier per unit of energy due to the additional materials used in production.

Note that the cell voltages involved in these reactions are larger than the potential at which an aqueous solutions would electrolyze.