Impact of Battery Performance on Total Cost of Ownership for Electric Drive Vehicle

The development of technologies and economies of scale has decreased battery cost for electric vehicle powertrains substantially in the last decade. However, electric vehicles are still pricier compared to vehicles with conventional powertrains. Incentives that promote vehicle electrification for cleaner and more sustainable urban mobility should rely on a holistic cost analysis that considers the life cycle costs of different vehicle technologies. This paper presents a method that estimates the direct Total Cost of Ownership (TCO) for different electric vehicle powertrains. The TCO, which include direct and indirect costs, is estimated for three representative urban light duty vehicles: Hybrid Electric Vehicle (HEV), Electric Vehicle (EV), and Plug-in Hybrid Electric Vehicle (PHEV). The TCO includes the present value of: 1) Vehicle retail cost including tax, 2) Lifetime operation cost from the time of vehicle purchase to the time of scrapping, including fueling, maintenance, taxes, insurance, registration and licensing costs, 3) Battery replacement cost, and 4) Time cost. Battery life expectancy is estimated by considering wear data. The results, which are based on vehicle technology characteristics and driver behavior, showed that the TCO for United States, showed that the TCO for EV and PHEV is higher by 24% and 36%, respectively, compared to the HEV. The method provides a better understanding of overall vehicle performance; it facilitates comparisons and supports policies for improved urban mobility.