Charting the Path to Electrification: Analyzing the Economic and Technological Potential of Advanced Vehicle Powertrains

The U.S. Department of Energy’s Vehicle Technologies Office (DOE-VTO) is driving advancements in highway transportation by targeting energy efficiency, environmental sustainability, and cost reductions. This study investigates the fuel economy potential and cost implications of advanced powertrain technologies using comprehensive system simulations. Leveraging tools such as Autonomie and TechScape, developed by Argonne National Laboratory, this study evaluates multiple timeframes (2023–2050) and powertrain types, including conventional internal combustion engines, hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and battery electric vehicles (BEVs). Simulations conducted across standard regulatory driving cycles provide detailed insights into fuel economy improvements, cost trajectories, and total cost of ownership. The findings highlight key innovations in battery energy density, lightweighting, and powertrain optimization, demonstrating the growing viability of BEVs and their projected economic competitiveness with conventional vehicles by 2050. This work delivers actionable insights for policymakers and industry stakeholders, underscoring the transformative potential of vehicle electrification in achieving sustainable transportation goals.