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Li-Ion battery is attractive for HEVs and FCEVs because of its high power density and lack of memory effect. However, high battery temperatures during operation result in a short battery lifespan and degraded performance. To address this issue, battery manufacturers and OEMs have used different pre-set cooling strategies. Unlike the pre-set cooling strategy this thermal model forecasts battery temperatures, allows a better usage of the battery system, responds to battery power demand and maintains battery temperature limits. This paper discusses the real-time control of the battery cooling including battery stress analysis. The authors present a dynamic thermal model for the Li-Ion battery system using the finite-volume method and discuss transient battery thermal characteristics and real-time battery cooling control under various battery duty cycles. Validation results of the model are presented in this paper.