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With the rapidly evolving technology of the smart grid and electric vehicles (EVs), the battery has emerged as the most prominent energy storage device, attracting a significant amount of attention. The very recent discussions about the performance of lithium-ion (Li-ion) batteries in the Boeing 787 have confirmed so far that, while battery technology is growing very quickly, developing cells with higher power and energy densities, it is equally important to improve the performance of the battery management system (BMS) to make the battery a safe, reliable, and cost-efficient solution. The specific characteristics and needs of the smart grid and EVs, such as deep charge/discharge protection and accurate state-of-charge (SOC) and state-of-health (SOH) estimation, intensify the need for a more efficient BMS. The BMS should contain accurate algorithms to measure and estimate the functional status of the battery and, at the same time, be equipped with state-of-the-art mechanisms to protect the battery from hazardous and inefficient operating conditions.