Battery Ownership Model: A Tool for Evaluating the Economics of Electrified Vehicles and Related Infrastructure

Abstract

This presentation uses a vehicle simulator and economics model called the Battery Ownership Model to examine the levelized cost per mile of conventional (CV) and hybrid electric vehicles (HEVs) in comparison with the cost to operate an electric vehicle (EV) under a service provider business model. The service provider is assumed to provide EV infrastructure such as charge points and swap stations to allow an EV with a 100-mile range to operate with driving profiles equivalent to CVs and HEVs. Battery cost, fuel price forecast, battery life, and other variables are examined to determine under what scenarios the levelized cost of an EV with a service provider can approach that of a CV. Scenarios in both the United States as an average and Hawaii are examined. The levelized cost of operating an EV with a service provider under average U.S. conditions is approximately twice the cost of operating a small CV. If battery cost and life can be improved, in this study the cost of an EV drops to under 1.5 times the cost of a CV for U.S. average conditions. In Hawaii, the same EV is only slightly more expensive to operate than a CV.