Lithium battery is an important power source of an electrical vehicle (EV). Practically, when a battery is about to fail, it needs to be removed from the load because keeping it connected can lead to permanent damage. Hence, it is important to detect battery failure to sustain the lifespan of the battery and avoid safety issues which will contribute to the sustainability of the EV. However, determining the effective disconnecting or discharging moment of the battery remains a challenging issue in EV applications. In order to solve the abovementioned problem, a control framework and maximum likelihood estimation are proposed to estimate the parameters of a battery model. In addition, both the sparse representation and dynamic mode decomposition (DMD) approaches are applied to protect the physical battery unit from a failure scenario. For comparison purposes, the proposed framework is compared to a Lyapunov-based detection approach along with neural network (NN) and linear discriminant analysis (LDA). Moreover, several state estimation algorithms are applied to estimate battery state of charge (SOC) at each time step: extended Kalman filter, extended Kalman smooth variable structure filter, and cubature Kalman filter. Finally, the experimental results showed that the proposed DMD approach outperforms the sparse representation, NN, LDA, and Lyapunov-based approaches in terms of detection accuracy. Moreover, the proposed DMD strategy is more robust towards the inaccuracy of the estimated SOC. Besides that, the proposed battery model parameter estimation approach exhibited fast processing time; therefore, it is a reliable choice for recomputing the model parameters from time to time to compensate aging effect. An autonomous unmanned aerial vehicle (UAV) was simulated as a proof-of-concept in a MATLAB environment to verify the detection performance of the proposed methods. Both actual and UAV results showed that the DMD demonstrated more robust detection performance than other methods in terms of processing time and detection accuracy.