China is working to boost the manufacture, market share, sales, and use of NEVs to replace fuel vehicles in transportation sector to get carbon reduction target by 2060. In this research, using Simapro life cycle assessment software and Eco-invent database, the market share, carbon footprint, and life cycle analysis of fuel vehicles, NEVs, and batteries were calculated from the last five years to next 25 years, with a focus on the sustainable development. China is working to boost the manufacture, market share, sales, and use of NEVs to replace fuel vehicles in transportation sector to get carbon reduction target by 2060. In this research, using Simapro life cycle assessment software and Eco-invent database, the market share, carbon footprint, and life cycle analysis of fuel vehicles, NEVs, and batteries were calculated from the last five years to next 25 years, with a focus on the sustainable development. Results indicate globally, China had 293.98 m vehicles and 45.22% worldwide highest market share, followed by Germany with 224.97 m and 42.22% shares. Annually China's NEVs production rate is 50%, and sales account for 35%, while the carbon footprint will account for 5.2 E+07 to 4.89 E+07 kgCO2e by 2021–2035. The power battery production 219.7 GWh reaches 150%–163.4%, whereas carbon footprint values in production and use stage of 1 kWh of LFP 44.0 kgCO2eq, NCM-146.8 kgCO2eq, and NCA-370 kgCO2eq. The single carbon footprint of LFP is smallest at about 5.52 E+09, while NCM is highest at 1.84 E+10. Thus, using NEVs, and LFP batteries will reduce carbon emissions by 56.33%–103.14% and 56.33% or 0.64 Gt to 0.006 Gt by 2060. LCA analysis of NEVs and batteries at manufacturing and using stages quantified the environmental impact ranked from highest to lowest as ADP > AP > GWP > EP > POCP > ODP. ADP(e) and ADP(f) at manufacturing stage account for 14.7%, while other components account for 83.3% during the use stage. Conclusive fi. ••Annually China's NEVs production rate is 50%, and sales account for 35%.••1 kWh NCA battery has same environmental impact as 8.4 kWh LFP, and 7.2 kWh SSBs.••In China NEVs, batteries will reduce CO2 emission by 0.64 Gt to 0.006 Gt before 2060.••Carbon footprint values of 1 kWh LFP and SSBs in production stage are smallest than NCM.••China NEVsLFP and NCM batteriesCarbon footprint and LCA analysisCarbon neutralityGlobally combustion of fossil fuels in the road transport sector contributes a significant one-quarter share of greenhouse gas (GHGs) emissions in the atmosphere which is affecting air quality (Bu et al., 2021). So far, Sulfur oxide (SOx), particulate matter (PM), carbon dioxide (CO2), (Jansuwan et al., 2021), carbon monoxide (CO), volatile organic compounds (VOCs), and nitrogen oxide (NOx) are the most common gases (Zahoor et al., 2023). Currently, CO2 is more dangerous than other gases because it's capable of forming a complex with hemoglobin which affect human and animal health through the blood circulation in the body. Subsequently, many developed countries taking action to reduce the CO2 emission from the transportation sector.Worldwide, yearly China and the U.S.A. are the major two countries that produce the most CO2 emissions from road transportation (Mustapa and Bekhet, 2016). However, China's emissions per capita are significantly lower about 557.3 kg CO2/capita than the U.S.A 4486 kg CO2/capitation. Whereas Canada's 4120 kg CO2/per capita, Saudi Arabia's 3961 kg CO2/per capita, Germany 3339 kg CO2/per capita (Silva et al., 2022), Malaysia's 1879 kg CO2/per capita (X. J. Li et al., 2022), and France is 1758 kg CO2/capita (Littlejohn and Proost, 2019).According. The main research steps are analyzing the market structure, production, sales, volume, installed capacity, carbon footprint, LCA, carbon neutrality strategy, and sustainable development mechanism of NEVs and power batteries. The whole technical framework of this research is shown in Fig. 1. It is important to note that due to a lack of transparency.