Calorimeter are widely used to measure heat generation rate of battery. However, the calorimeter cannot provide accurate heat generation rate when step charging and discharging is applied to lithium-ion battery because calorimeter has limited heat transfer capability. In this paper, we develop a new calorimeter to measure lithium-ion battery heat generation rate using thermoelectric device (TEM). PCB board with the same size as battery is used to finish the static calibration in order to get the information of TEM, including the relationship of the heat pumping rate and input current, heat capacitance of TEM. Different control methods are designed to control the surface temperature of battery, including PID controller, lead-lag compensator, and etc. By comparison, lead-lag compensator is used to control the temperature of battery. When battery is charged and discharged with pulse current, heat generation rate follow the abrupt changes of the current. In order to estimate the heat generation accurately, the calorimeter is calibrated for dynamic response. The limited thermal conductivity and capacitance of the TEM cause a delay between the input current for TEM and the associated heat pump rate, which affects the dynamic response the TEM. In order to improve the dynamic response of the calorimeter, Kalman filter is used to compensate the delay based on the dynamic heat transfer model. By experimental validation, the designed calorimeter can estimate the heat generation rate of battery accurately and fast. And the designed calorimeter can control the surface temperature of lithium-ion battery very well compared with thermal chamber.