Both types of batteries, or cells, operate at different voltages. Lithium-ion cells operate at 3.7 volts, while nickel-cadmium cells operate at around 1.2 volts, according to Green Batteries. Lithium ion cells are manufactured to last for about three years. Nickel-cadmium cells are rated to last for longer than lithium-ion cells at around five years, according to Battery University.
Lithium-ion cells are used in portable electronic devices from cell phones to laptop computers. Nickel cadmium cells have practical applications in devices such as power tools and two-way radios. A typical lithium ion battery is manufactured to provide about 500 charging cycles, while nickel cadmium batteries last up to 1,000 cycles, according to Battery University.
Lithium-ion cells do not lose much electrical storage capacity throughout the life of the cell. Nickel-cadmium cells, on the other hand, can rapidly lose storage capacity throughout their lives. In terms of self-discharging while not in use, lithium-ion cells are much more efficient than nickel-cadmium. Nickel-cadmium cells will lose their charge considerably quicker than lithium-ion cells during periods of discontinued use.