Since 1994/95 nearly all vehicle manufacturers started to use transponder technology in their cars and keys. Transponders are fitted inside the head of the key. Transponders are small carbon or glass chips which emit data when subjected to a low power electric field. The data (logic) from the transponder is compared to that which is stored inside the immobiliser inside the car. If the data matches, it allows the engine to start. The owner of the car may not be aware that the transponder is there because there are no buttons to press. Programming a key essentially means matching the key's transponder to the immobiliser by use of secure programming procedures and secret codes.
Your transponder does not require a power source. Batteries in keys are usually for other functions such as remote central locking.