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The application of lithium‐ion batteries especially for electric vehicles has been limited by the factors of safety, lifetime, charging time, and cost. One of the principal limitations is that the performance of Li‐ion batteries drops intensely in a cold environment. Cold environment dramatically reduces the available capacity of the batteries and increases its internal impedance at the same time. Therefore, the estimation of state‐of‐health is of great importance in battery performance evaluation and lifetime prediction. Furthermore, the heating methods need to be developed to ensure that batteries work in abnormal temperature conditions. This paper conducts a comprehensive review specifically on the poor performance of lithium‐ion cells under severe conditions. The content contains three sections. First, a comprehensive study on the aging mechanisms of lithium‐ion batteries at cold temperatures is undertaken. Second, the estimation methods of the health state of the batteries are conducted, which is vital to understand the fundamentals and quantify the performance and aging effects for lithium‐ion batteries. Third, the heating methods are classified and studied in detail to reduce the degradation mechanism and promote the performance of lithium‐ion batteries under sub‐zero conditions. [ABSTRACT FROM AUTHOR]