The graphite anode in lithium-ion batteries is vulnerable to capacity fade due to several mechanisms. Advancement in understanding of such capacity fade mechanisms has paved the way for selecting design parameters that consider these effects. This paper shows the effect of porosity, thickness, and tortuosity of the anode on capacity fade mechanisms. Three main capacity fade mechanisms are analyzed in this paper: (1) solid electrolyte interface (SEI) side reaction, (2) lithium plating side reactions and (3) mechanical degradation due to intercalation induced stresses. Moreover, for a given thickness and porosity of anode, the effect of porosity variation on capacity fade mechanisms is also presented. Lithium-ion chemistries are attractive for many applications due to high cell voltage, high volumetric and gravimetric energy density (100 Wh/kg), high power density (300 W/kg), good temperature range, low memory effect, and relatively long battery life.1-3 Capacity fade, underutilization, and thermal runaway are the main issues that need to be addressed in order to use a lithium-ion battery efficiently and safely over a long life.Research on various fronts is underway to address the issues mentioned above. While finding better materials and improving their properties is one approach, the use of system level strategies to reach better efficiency in existing and emerging systems is another approach. The true potential of battery materials cannot be realized due to system level efficiencies, especially where transport effects become dominant (e.g. higher rates of charging/discharging at normal temperature or low temperatures operations).One of the many problems that can be addressed by continuum level modeling approaches is finding the optimum thicknesses and porosities of anode and cathode materials while keeping various processes and objectives in mind. These objectives may be discharge capacities at higher rates, charging time, mechanical degradation due to intercalation induced stresses, loss of active lithium due to parasitic side reaction (SEI layer and lithium plating), safety etc. While one would like to maximize energy density by packing the solid phase material compactly with larger thickness; rate capacity, safety and capacity fade may cause such an approach to be impractical.How should one choose the porosity and length of anode and cathode is an interesting research problem. Design optimization (porosity and thickness) for lithium-ion battery can be traced back to the work done by Prof. Newman using the reaction zone model 4 and with the pseudo two dimensional model. 5 Work on determining the optimal porosity distribution by considering the ohmic drop has been done by Ramadesigan et al. 6 Effect of low temperature and porosity on the performance of lithium-ion batteries is also studied by Ji et al. 7 While these works are based on maximizing the energy/power density of lithium-ion batteries by choosing optimal design parameters, no work has been done in quantifying the effect of design parameters on capaci...