Structural battery composites fall under the category multifunctional materials with the ability to simultaneously store electrical energy and carry mechanical load. While functioning as the negative electrode, the carbon fibres also act as mechanical reinforcement. Lithium ion insertion in the carbon fibres is accompanied by a large radial expansion of 6.6 % and an axial expansion of 0.85 % of the fibres. Furthermore, the elastic moduli of the carbon fibres are significantly affected by the insertion of lithium. Current structural battery modelling approaches do not consider these features. In this paper, we investigate the effect of lithium insertion in carbon fibres on the structural electrode mechanical properties by developing a computational model considering finite strains and lithium concentration dependent fibre moduli. The computational model enables representation of morphological change, whereby, features such as internal stress state, homogenized tangent stiffness and effective expansion of the electrode caused by carbon fibre lithiation can be predicted. The adopted finite strain formulation allows for consistent consideration of measurement data at varying state of lithiation. The significance of adopting the finite strain formulation is also shown numerically. Finally, by implementing a novel approach to homogenized stress-free expansion, it is shown that the computed expansion of the structural electrode follows a similar trend to what is observed from experiments.