page 41 • As of 2025, almost all battery electric vehicles (BEVs) use one of two lithium battery chemistries: • Li-NCx - lithium nickel cobalt oxides, including nickel-manganese-cobalt and nickel-colbat-aluminum, are the current global standard and are used longer range EVs. This battery chemistry has higher energy density (longer vehicle range) but is more expensive and is projected to have a shorter lifespan (faster degradation with cycling). • LFP - Lithium iron phosphate batteries have a shorter range but are cheaper and potentially more durable. LFP has become the leading technology in China but has limited market penetration in California. • Solid state batteries, along with many other chemistries, are under development and are expected to eventually produce batteries that are high density, safe, cheap, and durable. • The durability of future EV batteries will matter for V2G deployment because it impacts the willingness of customers to participate. The term “million-mile battery” was introduced in a 2019 publication. • Today it is common to avoid charging past 80% with Li-NMC (reflected in our assumptions for customer participation cost), but if batteries could be charge/discharged in the 80-100% with little impact, sensitivity analysis shows an increase in the value of V2G by 6%. New battery technologies could enable more valuable V2G participation