Lithium-ion batteries, crucial in powering Battery Electric Vehicles (BEVs), face critical challenges in maintaining safety and efficiency. The quest for an effective Battery Thermal Management System (BTMS) arises from critical concerns over the safety and efficiency of lithium-ion batteries, particularly in Battery Electric Vehicles (BEVs). This study introduces a pioneering BTMS solution merging a two-phase immersion cooling system with heat pipes. Notably, the integration of NovecTM 649 as the dielectric fluid substantially mitigates thermal runaway-induced fire risks without requiring an additional power source. Comprehensive 1-D modeling, validated against AMESim (Advanced Modeling Environment for Simulation of Engineering Systems) simulations and experiments, investigates diverse design variable impacts on thermal resistance and evaporator temperature. At 10 W, 15 W, and 20 W heat inputs, the BTMS consistently maintained lithium-ion battery temperatures within the optimal range (approximately 27–34 °C). Optimized porosity (60%) and filling ratios (30–40%) minimized thermal resistance to 0.3848–0.4549 °C/W. This innovative system not only enhances safety but also improves energy efficiency by reducing weight, affirming its potential to revolutionize lithium-ion battery performance and address critical challenges in the field.