The objective of the research is to develop reduced-order state-space models that can predict internal states that are not directly observable with existing sensors. In doing so, battery management systems (BMS) can make real-time control decisions based upon sensor inferences. For example, estimating local electrode Li and electrolyte Li-ion concentrations or local electrostatic potential differences between electrode and electrolyte phases offer valuable knowledge in predicting behaviors such as Li plating, dendrite growth, or electrode fracture. Such indirect predictive capabilities, for example, can enable fast-charging protocols that avoid damage mechanisms.This talk explores the mathematical feasibility of estimating local Li concentrations and electrostatic potentials using observed current-voltage sequences. The approach for determining internal battery states begins with an estimator that uses observed input-output data from a physics-based reduced-order state-space model. If the model satisfies the property of observability, a sufficiently long window of input-output data can predict unique internal-state trajectories that are compatible with the observable data. The research considers understanding the effects of sampling time and state of charge on internal-state observability.Efficient estimation algorithms must incorporate battery physics and chemistry yet be sufficiently simple as to run in real-time on a battery management system (BMS). The present research first develops a physics-based pseudo-two-dimensional (P2D) model, which describes battery thermodynamics, transport, and kinetics, results in a system of nonlinear, coupled, differential-algebraic equations that can be solved computationally, but too slow for real-time implementation. The P2D model is then reduced to a gain-scheduled, locally linear, state-space model that can be run in real-time. Both models are implemented within the MATLAB/Simulink framework that facilitates development and evaluation of control strategies.