The working principle of LiFePO4 Battery refers to the battery charging and discharging principle. When you charge the battery, the lithium ion is generated on the positive electrode of battery body, and the ion moves through the electrolyte to the negative electrode next. because the anode carbon is the layered structure, it has many micropores, and the lithium ion that reaches the negative electrode is embedded into the micropores of the carbon layer. The more the embedded lithium ion is, the higher battery charging capacity will be.
In Similar, when the battery need to be discharged, the lithium ions embedded in the negative carbon layer are removed and moved back to the positive electrode. The more lithium ion goes back to the positive electrode, the higher the discharge capacity it will get. What we usually refer to as LiFePO4 battery capacity is the discharge capacity.