Lithium-air batteries (LABs) are an intriguing next-generation technology due to their high theoretical energy density of {approx}11 kWh/kg. However, LABs are hindered by both poor rate capability and significant polarization in cell voltage, primarily due to the formation of Li{sub 2}O{sub 2} in the air cathode. Here, by employing hybrid density functional theory, we show that the formation of small polarons in Li{sub 2}O{sub 2} limits electron transport. Consequently, the low electron mobility {mu} = 10{sup -10}-10{sup -9} cm{sup 2}/V s contributes to both the poor rate capability and the polarization that limit the LAB power and energy densities. The self-trapping of electrons in the small polarons arises from the molecular nature of the conduction band states of Li{sub 2}O{sub 2} and the strong spin polarization of the O 2p state. Our understanding of the polaronic electron transport in Li{sub 2}O{sub 2} suggests that designing alternative carrier conduction paths for the cathode reaction could significantly improve the performance of LABs at high current densities.