Lithium-ion batteries are widely applied in the form of new energy electric vehicles and large-scale battery energy storage systems to improve the cleanliness and greenness of energy supply systems. Accurately estimating the state of power (SOP) of lithium-ion batteries ensures long-term, efficient, safe and reliable battery operation. Considering the influence of the parameter identification accuracy on the results of state of power estimation, this paper presents a systematic review of model parameter identification and state of power estimation methods for lithium-ion batteries. The parameter identification methods include the voltage response curve analysis method, the least squares method and so on. On this basis, the methods used for modeling and estimating the SOP of battery cells and battery packs are classified and elaborated, focusing on summarizing the research progress observed regarding the joint estimation method for multiple states of battery cells. In conclusion, future methods for estimating the SOP of lithium-ion batteries and their improvement targets are envisioned based on the application requirements for the safe management of lithium-ion batteries.