Beyond portable mobile devices, lithium-ion batteries play a crucial role in electric vehicle operations and stationary grid power generation. However, the aging of lithium-ion batteries, often accelerated by extreme temperatures and load current influences, requires thorough examination and solution. The high load current, cycling, temperature differential, and operational conditions are factors contributing to the reduction in capacity and shortened lifespan of lithium-ion batteries. In this study, a lithium-ion (LiNixMnyCozO2) battery was modeled by using the MATLAB/Simulink model technique. In order to investigate the effect of resistance build-up in the batteries, the capacity of the batteries (old and new batteries) was analyzed over different usage periods: 360 cycles, 1000 cycles, and 2000 cycles. A cooling system was introduced to explicitly carry out an inductive analysis of the effect of temperature on the performances of the batteries. The effect of load current on the capacity of the battery was examined between 30 A and 100 A. The results showed that the available capacity of a battery is proportional to its usage rate. Generally, when the load current on the batteries (old and new batteries) was 30 A, the battery was ideally in good health even after 1000 cycles for a 2 h discharge time. In addition, the old battery, however, showed a capacity decrease to about 74.15% and 74.94% for scenarios 1 and 2 after 1000 cycles for a 2 h discharge time when the batteries were subjected to a 100 A discharge current. Amongst other factors, scenarios 1 and 2 can be differentiated by whether the battery pack discharges uniformly or non-uniformly, whether the individual cells operate under the same or different discharge cycles, and whether the batteries are with cooling or without a cooling system. The voltage and temperature differences between the old and new batteries, after 2000 cycles for the 100 A load current, are 4.0 V and 5.3 °C (scenario 2), respectively. Moreover, after 360 cycles at a 100 A discharge current, the temperature difference between the old and new batteries was 4.5 °C in scenario 1 and 2.3 °C in scenario 2. Based on the results obtained in this study, useful equations for proper calibration, voltage, and cooling switching time characteristics were proposed. Additionally, the study results indicated that at higher load currents, battery degradation became less affected by temperature differentials. The results of this study will aid in the adequate load optimization and thermal management of lithium-ion batteries for electric vehicle applications.