The nail penetration test has been widely adopted as a battery safety test for reproducing internal short-circuits. In this paper, the effects of cell initial State-of-Charge (SOC) and penetration location on variations in cell temperature and terminal voltage during penetration tests are investigated. Three different initial SOCs (10%, 50%, and 90%) and three different penetration locations (one is at the center of the cell, the other two are close to the edge of the cell) are used in the tests. Once the steel cone starts to penetrate the cell, the cell terminal voltage starts to drop due to the internal short-circuit. The penetration tests with higher initial cell SOCs have larger cell surface temperature increases during the tests. Also, the penetration location always has the highest temperature increment during all penetration tests, which means the heat source is always at the penetration location. The absolute temperature increment at the penetration location is always higher when the penetration is close to the edge of the cell, compared to when the penetration is at the center of the cell. The heat generated at the edges of the cell is more difficult to dissipate. Additionally, a battery cell internal short-circuit model with different penetration locations is built in ANSYS Fluent, based on the specifications and experimental data of the tested battery cells. The model is validated with an acceptable discrepancy range by using the experimental data. Simulated data shows that the temperature gradually reduces from penetration locations to their surroundings. The gradients of the temperature distributions are much larger closer to the penetration locations. Overall, this paper provides detailed information on the temperature and terminal voltage variations of a lithium-ion polymer battery cell with large capacity and high power under penetration tests. The presented information can be used for assessing the safety of the onboard battery pack of electric vehicles.