Here's a post I researched back when the DX came out:
This is what I've compiled through the process of a lot of reading...
Your Lithium Ion battery has a life span just like you and me. Its life span is measured in cycles. One cycle is a complete charge and recharge of the battery. Depending on the battery, and this changes all the time with size, quality and technology, your batterys life span is probably somewhere between 300 and 700 cycles.
If you wake up in the morning, pull your battery off of your charger and then proceed to use 65% of the charge that day, and then put it back on the charger that night, youve just completed 0.65 cycles. So for most of us, a cycle is longer than a day. For many, not so much.
Partially discharging and then recharging your battery does not damage it. But each of these sub-cycles does have one negative, albeit minor effect: it makes the batterys internal circuitry just a little less accurate.
Now youd think that a battery would know how much juice it has, but think about it. From the day you start using your battery, it begins a long, slow process of decline. It is dying a little bit each day. Sad, but the same is true of you so dont feel too bad for it. Now
do you expect your battery to keep up with this ever-changing process of decay with pinpoint accuracy?
It cant, but heres what you can do to help it stay sharpabout once every 30 days, starting with when you first get it and thereafter, drain your battery completely. This does cycle your battery, so dont do it a lot or youll wind up killing it off early. Once a month is what the rocket scientists recommend. When you do drain your battery, youre in effect recalibrating it. Now it knows exactly how much juice it has
and promptly starts slowly drifting off target again. Thats okaygood enough is good enough.
So these monthly drains make the battery meter a little more accurate each time, and thats good and necessary. The initial drain can have a far more dramatic effect however. Your brand new battery got a factory charge before it was shipped out to you, but its never been drained. It is an unqualified idiot and it cant even count toothpicks or make unintentionally poignant witticisms. To paraphrase, a new battery is like a box of chocolates: you never know what its going to tell you. Draining it the first time is sending it to school.
Remember, youre not changing your batterys capacity in any way. Youre simply enabling it to give you better information about its status, and that eases your mind and makes you feel better. Nobody likes buying a brand-new (and expensive) electronic marvel just to see some vital part of its functionality immediately crash and burn.
Other things to know
Heat kills your battery. Dont leave your phone in a hot car or inside a nuclear reactor.
Time kills your battery. If you buy one and leave it lying around, itll die lying there.
Inactivity kills your battery. If you do buy a spare, swap it in occasionally.
An inactive Lithium Ion battery will last longest if stored in the refrigerator at 40% charge.
Lithium Ion batteries can be made to explode, but they are not a suitable substitute for C4.
You cant overcharge your Lithium Ion battery. The internal circuitry prevents it.
Take care of your battery and it will take care of you. Not because it likes you though. Its just a piece of lithium with some ions sprinkled on top.
Battery University
Apple on Batteries
Blackberry FAQ
Power Electronics