Li-ion cells are being developed for high-power applications in hybrid electric vehicles currently being designed for the FreedomCAR (Freedom Cooperative Automotive Research) program. These cells offer superior performance in terms of power and energy density over current cell chemistries. Cells using this chemistry are the basis of battery systems for both gasoline and fuel cell based hybrids. However, the safety of these cells needs to be understood and improved for eventual widespread commercial application in hybrid electric vehicles. The thermal behavior of commercial and prototype cells has been measured under varying conditions of cell composition, age and state-of-charge (SOC). The thermal runaway behavior of full cells has been measured along with the thermal properties of the cell components. We have also measured gas generation and gas composition over the temperature range corresponding to the thermal runaway regime. These studies have allowed characterization of cell thermal abuse tolerance and an understanding of the mechanisms that result in cell thermal runaway.