A gel polymer electrolyte (GPE) was prepared by in-situ thermal polymerization of 1,3-butanediol diacrylate (BDDA) in a EC/EMC/DMC electrolyte solution at 100 °C. The GPE with 15 wt.% polymer content appears as apparently “dry” polymer with sufficient mechanical strength and shows a high ionic conductivity of 3.2×10−3 S cm−1 at 20 °C. The MCMB–LiCoO2 type polymer Li-ion batteries (PLIB) prepared using this in-situ internal polymerization method exhibit a very high initial charge–discharge efficiency of 92.1%, and can deliver 94.4% of its nominal capacity at 1.0 C rate and 70.7% of its room temperature capacity at −20 °C. Also, the PLIB cells show very good cycling ability with >85% capacity retention after 300 cycles. The excellent charge–discharge properties of the PLIB cells are attributed to the integrated structure in which the polymer matrix spreads over entire region of the cell acting as a strong binder and electrolyte carrier to produce a stabilized electrode–electrolyte interface. In addition, the fabricating process of the polymer cell is quite simple and convenient for practical applications.