Sorry Mike, I thought the link I posted for you explained it.
Here let me try to explain,
First, in your quote, the 2.5 is only a reference number used by the place you got this data from. It has no meaning here.
Now, in this case we are using 0.2C at 500milliamps. So if 500 milliamps is applied as a constant current, the battery will be fully discharged in 5 hours. 5 hours times .5 amps equals a rating of 2500mah. or 2.5 amp hours.
So what they are doing, in laymens terms, is applying .5 amps of constant current, and timing the length of time it takes a fully charged battery to reach it's cut off, which is at 3.0 volts. This cut off is considered to be fully discharged. Once this has been calculated they can come up with the rating in milliamp hours, or larger batteries would be in amp hours.
For this battery they obtained a rating of 0.2C, in this case equals 500 milliamps, times 5 hours of constant current equals a minimum 2,500 milliamp hour rating or 2.5 amp hours.
So 0.2C is 1/5 of 1.0C and if 500 milliamps equals 0.2C, then 1.0C would equal 2500 milliamp hours maximum charge current.
I think for the 18650 the maximum discharge current is rated at 1.5C which would be 2,500 (1.0C) times 1.5C equals 3750 milliamps. So to answer another question, the 18650 can handle a load of as much as 3.75 amps. This is 7.5 times the standard of 0.2C that was used to rate the battery. 1.5C/0.2C= 7.5
So as you can see, the 500 milliamps you refer to in your quoted formula is not the total amount of current the battery can apply, but merely the load used to obtain the mah hour rating.
Heavier loads can decrease this mah hour rating as it also effects the recovery rate of the battery and drops the battery's peak voltage level at a faster rate.
Li-Ions have greater recovery time than many other types of batteries and can handle higher currents as well. The way we use them with loads lasting only a few seconds at a time, it is really hard to calculate any other variables in to the equation. So for our purpose, and since our load time is in relatively short bursts, and given the Li-Ions ability to recover, simply using the standard Mah rating should be enough to get us in a ball park range of how long we can expect a battery to last.
But for consideration, given the other variables not discussed, we can expect some slightly shorter use times.
I hope I explained it right, and did not confuse anyone any further.
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