Due to lack of comments so far, here is my amateur understanding.
Li-ion, and almost all other rechargeable batteries, use chemical processes to store charged molecules in the battery liquid. When a current runs through it the molecules discharge and become neutral. When you charge a rechargeable battery, this process is reversed. However, no chemical process is 100% reversable. Therefore, all batteries based of this interaction, which all commercial batteries are, will always lose capacity over time.
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