More accurate and robust battery state estimation (BSE) techniques for a battery system of an electrified vehicle include estimating a current bias or offset generated by a current sensor and then adjusting the measured current to compensate for the estimated current bias. The techniques obtain nominal parameters for a battery model of the battery system based on a measured temperature and an estimated open circuit voltage (OCV). The techniques use these nominal parameters and the corrected measured current to estimate the OCV, a capacity, and an impedance of the battery system. The techniques utilize the OCV to estimate a state of charge (SOC) of the battery system. The techniques also estimate a state of health (SOH) of the battery system based on its estimated capacity and impedance. The techniques then control the electrified vehicle based on the SOC and/or the SOH.