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Most USB flash drives draw their power from the USB connection, and do not require a battery. Some devices that combine the functionality of a digital audio player with flash-drive-type storage require a battery for the player function.
Flash memory combines a number of older technologies, with lower cost, lower power consumption and small size made possible by recent advances in microprocessor technology. The memory storage was based on earlier EPROM and EEPROM technologies. These had very limited capacity, were very slow for both reading and writing, required complex high-voltage drive circuitry, and could only be re-written after erasing the entire contents of the chip.
Hardware designers later developed EEPROMs with the erasure region broken up into smaller "fields" that could be erased individually without affecting the others. Altering the contents of a particular memory location involved copying the entire field into an off-chip buffer memory, erasing the field, modifying the data as required in the buffer, and re-writing it into the same field. This required considerable computer support, and PC-based EEPROM flash memory systems often carried their own dedicated microprocessor system. Flash drives are more or less a miniaturized version of this.