Degradation at the electrode surfaces is one of the major reasons behind capacity fade in well-constructed batteries. The effect of electrolyte additives, in particular vinylene carbonate (VC), is studied extensively for different lithium-ion chemistries and is shown to improve columbic efficiency of some electrodes. We investigate the effect of VC additive in a graphite/NMC333 (lithiumnickel-manganese-cobalt oxide) cell. The addition of VC improves the rate performance, especially, at moderately high rates. A new three-electrode cell design with Li reference electrode was particularly useful in studying the rate performance of each electrode. The rate of side reactions is found to decrease with the addition of VC. Despite these important performance improvements, no significant improvement in the capacity retention is observed. This suggests that the side reactions in graphite/NCM cells consist of two types, (1) repairing cracked solid electrolyte interphase (SEI) on the negative electrode (results in a net consumption of Li from the positive electrode), (2) reforming SEI components that dissolve from the negative electrode and are oxidized at the positive electrode. The VC appears to reduce the second type but have negligible effect on the first. This indicates that columbic efficiency measurements are not a reliable indicator of cell cycle life. Electrode side reactions are one of the major reasons for the loss of performance of Li-ion batteries. The instability of commonly used electrolytes at typical operating potentials results in side reactions, some of which go to solid electrolyte interphase (SEI) formation at electrode surfaces.1-4 Using electrolyte additives is one effective way to minimize the rate of chemical degradation. Electrolyte additives also may be used to form a thinner, more compact and stable SEI, and thus reduce irreversible capacity loss, reduce parasitic reactions, and improve thermal stability of LiPF 6 salt against the electrolyte solvents. Zhang et al.5 nicely summarize different electrolyte additive studies in the literature classifying them by their SEI stabilization mechanism. In lithium ion batteries, electrolyte additives tend to affect two aspects of cell characteristics, namely, cell impedance and side reactions. In the present work the effect of Vinylene carbonate (VC) on both of these parameters was studied. In the first part of this article, the effect of electrolyte additive on the impedance of the individual electrodes using 3-electrode cell is illustrated. The second part correlates the effect of VC on cell side reactions and coulombic efficiency. This study was useful to demonstrate our hypothesis that coulombic efficiency is not a reliable indicator of cell cycle life.Vinylene carbonate (VC) has been extensively studied as an electrolyte additive and shown to improve battery life in some lithiumion battery chemistries.6 Aurbach et al. 1 observed a reduction of the impedance of synthetic graphite flakes, LiNiO 2 , and LiMn 2 O 4 electrodes against lithium counter electr...