『Abstract
　Recently battery leasing has been introduced into the market by automobile manufactures and power suppliers due to its potential to reduce the purchase cost of electric vehicles (EVs). However, the profit prospect of battery leasing is still uncertain. This paper takes the views of both the operators and consumers and calculates the ‘win-win’ marginal rent, which not only ensures the profitability of operators, but also allows consumers a lower expenditure than using Internal combustion engine vehicles (ICVs) and EVs with embedded batteries. Battery cost, vehicle weight, gasoline and electricity price, and the discount rate have impacts on the rent. Battery cost plays a dominant role and a battery cost ＞ 5 \/W h fails to enable the survival of battery leasing to all types of EVs. Battery leasing would be more competitive when focusing on heavier EVs. At least one of the three thresholds is required for the existence of rent pricing range for a 1000 kg EV: gasoline retail price ＞ 6\/L, electricity price ＜ 0.6 \/kW h, or the discount rate ＜7％. Typically, the feasible battery rent range is 0.34-0.38 \/W h/year for a 1000 kg EV under the present battery cost 2 \/W h and China current gasoline and electricity prices.

Keywords: Win-win marginal rent; EV battery leasing; China market』

1. Introduction
2. Requirement of independent profitability for the BLO
3. Profitability margin of the BLO
4. Benefit margin of consumers
　4.1. Expenditure difference between using the EV with battery rental and using the ICV
　　4.1.1. Total expenditure to buy and use the ICV
　　4.1.2. Total expenditure to buy nude EV and rent battery
　　　4.1.2.1. Calculation of nude EV price
　　　4.1.2.2. Calculation of rent fee
　　　4.1.2.3. Calculation of electricity fee
　4.2. Expenditure difference between using the EV with battery rental and with embedded batteries
5. Formula analysis and parameter value assignment
　5.1. Parameters correlation
　　5.1.1. Correlation between fuel/energy consumption and vehicle weight
　　5.1.2. Correlation between battery cost and battery life
　　5.1.3. Cost variance between the BLO and individual battery buyers
　　5.1.4. Disposal income
　5.2. Parameter value assignment
　　5.2.1. Annual travel distance s
　　5.2.2. EV range So
　　5.2.3. Maintenance cost of the BLO
　　5.2.4. Current gasoline price, electricity price, and discount rate in China
　5.3. new formula forms
6. Marginal rent analysis
　6.1. Three-dimensional analysis under China current prices
　6.2. Effect of battery cost on marginal rent
　6.3. Effect of vehicle weight on marginal rent
　6.4. Effect of gasoline price on marginal rent
　6.5. Effect of electricity price on marginal rent
　6.6. Effect of discount rate on marginal rent
7. Sensitivity analysis
　7.1. The approximation of the price difference between nude EV and ICV
　7.2. Curve fitting deviation
　7.3. Consumer habits
　7.4. Battery maintenance and disposal
　7.5. Battery cost and maintenance fee for individual buyers
8. Conclusions
Acknowledgments
References