A lithium rechargeable battery comprising: an electrode assembly including a cathode plate and an anode plate facing each other; a separator provided between the cathode plated and the anode plate; a can to receive the electrode assembly; a cap assembly to seal an upper opening of the can; an upper insulation plate located between the electrode assembly and the cap assembly; and a gasket located between the cap assembly and the can. An outer layer of the separator is wound on an outer portion of the electrode assembly and is exposed above the upper insulation plate.