The transition to renewable energy systems and electric mobility depends on the effectiveness, reliability, and durability of lithium-ion battery technology. Accurate modeling and control of battery systems are essential to ensure safety, efficiency, and cost-effectiveness in electric vehicles and grid storage. In engineering and materials science, battery models depend on physical parameters such as capacity, energy, state of charge (SOC), internal resistance, power, and self-discharge rate. These parameters are affected by measurement uncertainty. Despite the widespread use of lithium-ion cells, few studies quantify how measurement uncertainty propagates to derived battery parameters and affects predictive modeling. This study quantifies how uncertainty in voltage, current, and temperature measurements reduces the accuracy of derived parameters used for simulation and control. This work presents a comprehensive uncertainty analysis of 18650 format lithium-ion cells with nickel cobalt aluminum oxide (NCA), nickel manganese cobalt oxide (NMC), and lithium iron phosphate (LFP) cathodes. It applies the law of error propagation to quantify uncertainty in key battery parameters. The main result shows that small variations in voltage, current, and temperature measurements can produce measurable deviations in internal resistance and SOC. These findings challenge the common assumption that such uncertainties are negligible in practice. The results also highlight a risk for battery management systems that rely on these parameters for control and diagnostics. The results show that propagated uncertainty depends on chemistry because of differences in voltage profiles, kinetic limitations, and temperature sensitivity. This observation informs cell selection and testing for specific applications. Improved quantification and control of measurement uncertainty can improve model calibration and reduce lifetime and cost risks in battery systems. These results support more robust diagnostic strategies and more defensible warranty thresholds. This study shows that battery testing and modeling should report and propagate measurement uncertainty explicitly. This is important for data-driven and physics-informed models used in industry and research.