This paper provides an in-depth analysis of the development of China's new energy battery and automotive industry, focusing on the transition from traditional vehicles to new energy vehicles (NEVs) due to global energy restructuring and environmental concerns. The Chinese government's significant policy support for NEVs and related power battery sectors is highlighted, emphasizing their role in reducing carbon emissions and promoting environmental conservation. The paper traces the evolution of China's new energy battery and automobile industry, characterized by rapid technological progress and strategic national support. It examines various battery technologies, including lead-acid, nickel-based, and lithium-ion batteries, each with unique benefits and challenges. Lithium-ion batteries, despite their high cost and safety concerns, are preferred for their superior energy density and cycle life. The current development status of the industry is discussed, addressing rapid growth, technological innovations, and challenges such as battery inconsistency, safety, and recycling. The paper emphasizes the significance of technological advancements in power batteries, drive motors, and NEV system configurations. Looking to the future, the paper anticipates continued growth in China's NEV and power battery sector, driven by technological innovations, policy support, and alignment with China's dual-carbon strategy. Challenges such as cost control, safety, and battery recycling are recognized as critical areas for future development. In conclusion, the paper asserts that while China's new energy battery and automobile industry is poised for significant growth, it faces multifaceted challenges that require collaborative efforts from the government, industry, and research bodies to ensure sustainable and safe advancement.