Due to the tremendous expectations placed on batteries to produce a reliable and secure product, fault detection has become a critical part of the manufacturing process. Manually, it takes much labor and effort to test each battery individually for manufacturing faults including burning, welding that is too high, missing welds, shifting, welding holes, and so forth. Additionally, manual battery fault detection takes too much time and is extremely expensive. We solved this issue by using image processing and machine learning techniques to automatically detect faults in the battery manufacturing process. Our approach will reduce the need for human intervention, save time, and be easy to implement. A CMOS camera was used to collect a large number of images belonging to eight common battery manufacturing faults. The welding area of the batteries’ positive and negative terminals was captured from different distances, between 40 and 50 cm. Before deploying the learning models, first, we used the CNN for feature extraction from the image data. To over-sample the dataset, we used the Synthetic Minority Over-sampling Technique (SMOTE) since the dataset was highly imbalanced, resulting in over-fitting of the learning model. Several machine learning and deep learning models were deployed on the CNN-extracted features and over-sampled data. Random forest achieved a significant 84% accuracy with our proposed approach. Additionally, we applied K-fold cross-validation with the proposed approach to validate the significance of the approach, and the logistic regression achieved an 81.897% mean accuracy score and a +/− 0.0255 standard deviation.