A methodology has been developed for identifying the combination of battery characteristics which lead to least-cost electric vehicles. Battery interrelationships include specific power vs, specific energy, peak power vs. specific energy and DOD, cycle life vs. DOD, cost vs. specific energy and peak power, and volumetric and battery size effects. The method is illustrated for the “second car” mission assuming lead/acid batteries. Reductions in life-cycle costs associated with future battery research breakthroughs are estimated using a sensitivity technique. A research prioritization system is described.