Capacity fading has limited commercial layered Li-ion battery electrodes to <70% of their theoretical capacity. Higher capacities can be achieved initially by charging to higher voltages, however, these gains are eroded by a faster fade in capacity. Increasing lifetimes and reversible capacity are contingent on identifying the origin of this capacity fade to inform electrode design and synthesis. We used operando X-ray diffraction, to observe how the lithiation-delithiation reactions within a LiNi0.8Co0.15Al0.05O2 (NCA) electrode change after capacity fade following months of slow charge-discharge. The changes in the reactions that underpin energy storage after long-term cycling directly correlate to the capacity loss; heterogeneous reaction kinetics observed during extended cycles quantitatively account for the capacity loss. This reaction heterogeneity is ultimately attributed to inter-granular fracturing that degrades the connectivity of sub-surface grains within the polycrystalline NCA aggregate.