Lifetime Cost of Battery, Fuel-Cell, and Plug-in Hybrid Electric Vehicles 35

been reduced to 80% of its original capacity. The 2004 EPRI report [28] takes a more
conservative approach and estimates the salvage value of the battery by multiplying
the projected new module cost at the time of replacement by the percentage of battery
life remaining. This assumes that the battery has another useful application after being
used in a PHEV and that the value is proportional to the remaining battery life. For a
PHEV-32, the 2004 EPRI report [28] estimates a salvage value of about $15/kWh.

3.3.3 Electric motor and motor controller

The electric motor provides motive power to the axle, and the motor controller varies
the torque and speed of the electric motor as needed. The cost of these components can
be a significant proportion of the total incremental cost of a PHEV.
The 2001 EPRI report [25] modeled PHEVs with a DC brushless permanent magnet
motor, because this type of motor is smaller, less complex, and typically more efficient
than an induction motor and is easier to control than an AC motor. The authors
estimated the cost of the motor on the basis of several studies of traction motor costs
[5, 30, 31] and came up with the cost formula of $13.70/kW + $190, which equates to
about $16/kW for the motor sizes considered in their study. Based on a review of
previous cost estimates, Graham et al. [25] projected the cost of a PHEV motor
controller to be equal to $7/kW + $165.
The 2004 EPRI report [28] estimated the cost of a brushless permanent magnet
motor to be about $16/kW, but suggested that with high production volumes of these
motors and other devices that use permanent magnets the cost could drop to $10.50/
kW. The study estimated that motor controllers for PHEVs will cost around $10/kW,
assuming that the IGBTs used in the controllers will also be used in fuel cell and
distributed power systems and therefore will be produced in relatively high volumes.
On the basis of a 2005 National Research Council (NRC) report on FreedomCAR
[32] and a 2002 report by Energy and Environmental Analysis, Inc. [33] on the cost and
performance of conventional vehicles and hybrids, Kromer and Heywood [8] estimated
the cost of the PHEV motor and controller in 2030 to be $15/kW + $200 (2007 $).
Table 2.4 summarizes estimates of the cost of electric motors and controllers in PHEV
cost studies. See Lipman and Delucchi [34, 35] for a detailed analysis of the cost of
electric motors and controllers for HEVs.

3.3.4 Engine, exhaust system, and transmission

The engine and exhaust system are likely to be smaller for a PHEV than for an ICEV
because the electric power train shares the burden of propulsion. The 2001 EPRI report
[25] estimated engine costs using a set of curves developed at General Motors that show
base-engine cost versus engine power in kilowatt. For a 4-cylinder engine, the base-
engine cost function was approximately $11/kW + $400. EPRI estimated that the total
engine cost, including a thermal management system at $0.236/kW of peak engine