In this paper, an artificial neural network (ANN) based approach is proposed to estimate the capacity fade in lithium-ion (Li-ion) batteries for electric vehicles (EVs). Besides its robustness, stability, and high accuracy, the proposed technique can significantly improve the state-of-charge (SOC) estimation accuracy over the lifespan of the battery, which leads to more reliable battery operation and prolonged lifetime. In addition, the proposed technique allows accurate prediction of the battery remaining service time. Two identical 3.6-V/16.5-Ah Li-ion battery cells were repeatedly cycled with constant current and dynamic stress test current profiles at room temperature, and their discharge capacities were recorded. The proposed technique shows that very accurate SOC estimation results can be obtained provided enough training data are used to train the ANN models. Model derivation and experimental verification are presented in this paper.