Duke, coating results in improved energy and power densities, decreases charge transfer resistance, gives better cycle life, and superior safety levels. The usual coating is a very thin film of non-graphitic carbon, though other materials have been tried at different times. For more information, see:
Guoping et al, "Journal of Power Sources", 176, (2005)
This may be more than you wanted to know. The bottom line is that it makes the batteries substantially better, on a power-to-weight basis. Critical for EVs.
Cheers,
Prime1
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