Accurate estimations of battery parameter and state play an important role in promoting the commercialization of electric vehicles. This paper tries to make three contributions to the existing literatures through advanced time scale separation algorithm. (1) A lumped parameter battery model was improved for achieving accurate voltage estimate against different battery aging levels through an electrochemical equation, which has enhanced the relationship of battery voltage to its State-of-Charge (SoC) and capacity. (2) A multi-scale extended Kalman filtering was proposed and employed to execute the online measured data driven-based battery parameter and SoC estimation with dual time scales in regarding that the slow-varying characteristic on battery parameter and fast-varying characteristic on battery SoC, thus the battery parameter was estimated with macro scale and battery SoC was estimated with micro scale. (3) The accurate estimate of battery capacity and SoC were obtained in real-time through a data-driven multi-scale extended Kalman filtering algorithm. Experimental results on various degradation states of lithium-ion polymer battery cells further verified the feasibility of the proposed approach.