Thanx for the help people i appreciate it a lot. I just discovered what that tiny thing is. I forgot to mention it only has two leads.
It is basically a battery thermal switch a.k.a. thermostat. When the battery gets too warm, the contacts inside separate and the charging process stops since the circuit is open. Once the temperature climbs back down to safe levels, the contacts touch and the charging procedure resumes. As i said previously it was found in the heart of a Ni-Cad drill battery not Lipo.