Lithium-ion battery energy storage systems are rapidly gaining widespread adoption in power systems across the globe. This trend is primarily driven by their recognition as a key enabler for reducing carbon emissions, advancing digitalization, and making electricity grids more accessible to a broader population. In the present study, we investigated the dynamic behavior of lithium-ion batteries during the charging and discharging processes, with a focus on the impact of terminal voltages and rate parameters on the state of charge (SOC). Through modeling and simulations, the results show that higher terminal charging voltages lead to a faster SOC increase, making them advantageous for applications requiring rapid charging. However, large values of voltage-sensitive coefficients and energy transfer coefficients were found to have drawbacks, including increased battery degradation, overheating, and wasted energy. Moreover, practical considerations highlighted the trade-off between fast charging and time efficiency, with charging times ranging from 8 to 16 min for different rates and SOC levels. On the discharging side, we found that varying the terminal discharging voltage allowed for controlled discharging rates and adjustments to SOC levels. Lower sensitivity coefficients resulted in more stable voltage during discharging, which is beneficial for applications requiring a steady power supply. However, high discharging rates and sensitivity coefficients led to over-discharging, reducing battery life and causing damage. These new findings could provide valuable insights for optimizing the performance of lithium-ion batteries in various applications. [ABSTRACT FROM AUTHOR]