A system and method for determining the state of health of a battery. In particular, the present invention is related to a system and method for determining the state of health of an electrochemical battery cell by obtaining state of charge measurements for the battery cell, and using the state of charge measurements to calculate the state of health of the battery cell, wherein the state of charge measurements are based on the magnetic susceptibility of the battery cell. The system includes a sensing device for measuring the magnetic susceptibility of the battery cell, and a computing device for performing the steps of the disclosed method.