This study investigates the combined effects of external heating and State of Charge (SOC) on the discharge performance and thermal runaway risk of 21700 Li-ion batteries. Experiments subject commercially available 21700 cylindrical cells to various external heating conditions at different SOC levels (20, 40, 60, 80, and 100 %) while measuring discharge performance and thermal behavior at different discharge rates (0.2, 0.5, 1, and 1.5C). The study emphasizes the significance of Li-ions' spatial arrangement and maintaining electrical charge in the electrolyte to evaluate battery performance. Numerical simulations are then conducted to complement the experimental data and provide deeper insights. The results reveal a significant degradation in discharge performance with increasing external heat, characterized by voltage drops and reduced capacity. Cells with higher SOC levels exhibit more severe exothermic reactions during external heating, leading to a higher likelihood of thermal runaway. Cells operated at a moderate SOC of 40 % demonstrate a significantly lower risk of thermal runaway under similar heating conditions. The rapid rise in temperature at 100 % SOC of batteries showed a sharp increase of over 20 °C per second. Temperature spikes were noted at specific time intervals corresponding to different SOC levels: 100, 80, 60, 40, and 20. At this critical point, temperatures ranged from 135 to 182 °C, indicating potential thermal issues from internal short circuits causing separator melting. These findings highlight the critical role of SOC management in ensuring the safe and reliable operation of 21700 Li-ion batteries, particularly in applications involving elevated temperatures.