In the past decade, in the context of the carbon peaking and carbon neutrality era, the rapid development of new energy vehicles has led to higher requirements for the performance of strike forces such as battery cycle life, energy density, and cost. Lithium-ion batteries have gradually become mainstream in electric vehicle power batteries due to their excellent energy density, rate performance, and cycle life. At present, the most widely used cathode materials for power batteries are lithium iron phosphate (LFP) and LixNiyMnzCo1−y−zO2 cathodes (NCM). However, these materials exhibit bottlenecks that limit the improvement and promotion of power battery performance. In this review, the performance characteristics, cycle life attenuation mechanism (including structural damage, gas generation, and active lithium loss, etc.), and improvement methods (including surface coating and element-doping modification) of LFP and NCM batteries are reviewed. Finally, the development prospects of this field are proposed.