Abstract With the wide application of lithium batteries (LIBs) in electrified transportation and smart grids, especially in the pure electric vehicle industry, the accurate health maintenance monitor of LIBs has emerged as critical for safe battery operation. Although many data-driven methods with state of health (SOH) estimation for LIBs have been proposed, the problems of industrial generation and computational cost still need to be improved further. In contrast, this paper carried out a low-complexity SOH estimation method for LIBs. Specifically, the seven health indicators are extracted firstly to characterize battery health status from voltage, current, temperature and other data that can be obtained online. Then, the optimized gaussian process regression (GPR) algorithm is proposed with proper computational cost. Ultimately, combining a multi-indirect features extraction and optimized GPR algorithm, the online SOH estimation for LIBs was established and verified with NASA experiment data. The experimental results show that the maximum Mean Absolute Percentage Error (MAPE) of SOH estimation from the proposed method is 1.4496 and the minimum MAPE only reaches 0.5635. More importantly, the optimized GPR for SOH estimation can achieve a maximum 65.37% improvement under multiple evaluation criteria compared to traditional GPR. The method proposed in this paper is helpful for realizing on-line SOH estimation in battery management systems.