The enhancement of energy and power density in Li-ion batteries remains a focal point in battery research. When Li-ion batteries are operated at high C-rates, mass transport limitations cause large concentration gradients of Lithium ions to form in the electrolyte. The resultant concentration overpotentials and underutilization of active material effectively imply a lower capacity for higher current rates, which creates a tradeoff between energy and power density. The integration of 3D interleaved electrode structures has been proposed to augment power density while preserving energy density. This work comprehensively analyzes the capacity improvement achieved by utilizing a wavy interleaved structure using electrochemical simulations. A pseudo-3D (P3D) model based on the Doyle-Fuller-Newman framework is employed to analyze the performance of various depths and frequencies of the wavy interleaved structure. Galvanostatic simulations are performed for NMC/Graphite-SiOx and LMO/Graphite cells at different C-rates, and the resultant voltage is systematically divided into component overpotentials to delineate the contribution of activation, ohmic, and mass-transfer overpotentials in both solid electrode and electrolyte. With the same amount of active material, simulations indicate a performance improvement of 7% in capacity at high C-rates. It is observed that using a wavy structure significantly reduces electrolyte concentration heterogeneities and resulting concentration gradients when compared to a conventional flat structure. The overpotential breakdown confirms that the improvement in voltage is indeed contributed precisely by the concentration overpotential. Concentration overpotential decreases with deeper interleaved structures as well as for more spatially frequent structures.Additionally, the impact of the interleaved electrode structure on cell degradation was also assessed. Lithium plating, which is the most prominent side reaction in the anode, was modeled using a Butler-Volmer kinetic equation, with deposition occurring locally when the solid phase potential drops below that of the electrolyte potential. The interleaved structure alleviates plating significantly due to higher uniformity in Li-ion concentration. With this work, we computationally demonstrate that interleaved structure works well for extracting higher capacity with the same active material, and also aids in suppressing Lithium plating.Figure Caption : Computed Li-ion concentration profile in the solid active material of an interleaved electrode Li-ion cell as a function of location (x, y) and distance from particle center (z) Figure 1