Li-Ion batteries last longer than older technologies partially because they develope a thin passivation layer on their electrode surfaces. However, they can sometimes develope a thick passivation layer and problems will occur. Increased storage times, among other things, may cause this. The most common symptom is that the battery will appear to be fully charged, but last only a few seconds in use.
To
attempt to clear the problem, the battery needs to go through several charge/discharge cycles. You can discharge it in your camcorder by leaving it in camera mode. Make sure there's no tape in it or it will auto-shutoff prematurely. The best method to discharge the battery (best chance of a successful resurrection) is with a resistor across the battery terminals. A 10 ohm, 10 watt resistor should work fine. These are available in the US at Radio Shack stores.
Fully charge the battery in your camcorder or stand-alone charger. Take the battery out and place the resistor across it's terminals. The resistor will get hot while the battery is discharging, but will feel cool to the touch when it's discharged as low as it's circuitry will allow. So, when the resistor feels cool (room temperature), charge it again. When it's fully charged, test it in the camcorder. Sometimes the battery life will be a few minutes longer with each successive cycle, sometimes it won't. You may have to go through 2 to 5 cycles to bring the battery back to full capacity. If you have gone through 10 cycles without luck, it's probably time to give up.
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Li-Ion batteries should last about 2 years.
Store your battery in a charged state. It'll last longer.
Even new batteries can have a thick passivation layer.
Hacking batteries can be hazardous. Don't blame me if you hurt yourself.