Electric Vehicles (EVs) are rapidly emerging as a sustainable alternative to conventional transportation. However, battery-related faults such as overheating, overcharging, short circuits, and cell imbalance pose serious fire risks. This paper proposes a Smart IoT-Based Fire Prevention and Fault Detection System integrated with AI-powered Battery Management. The system utilizes multi-sensor monitoring to track temperature, voltage, current, and gas emissions in real time. Artificial Intelligence (AI) algorithms analyze the collected data to detect abnormal patterns and predict potential failures. When hazardous conditions are identified, the system generates instant alerts via mobile applications or SMS and triggers automatic safety actions such as relay cutoff and cooling mechanisms. A cloud-based dashboard provides real-time monitoring, historical data analysis, and predictive maintenance insights. The proposed system significantly enhances EV safety, reliability, and battery lifespan.