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Lithium-Ion batteries are being considered as a high-energy density replacement for Nickel Metal Hydride (NiMH) batteries in Hybrid Electric Vehicles (HEVs) and in the new Plug-In Hybrids (PHEVs). Although these cells can result in significant reduction in weight and volume, they have several safety related issues that still need to be addressed. We report here on the thermal response of Li-ion cells specifically assembled in our laboratory to test new materials, electrolytes and additives. Improvements in the thermal abuse tolerance of cells will be presented and discussed in terms of the need for overall battery system safety.