Battery leasing business for hydrogen fuel cell vehicles: Motorists' costs, adoption, and manufacturers’ profits

The high cost of the battery hinders the adoption of hydrogen fuel cell vehicles (HFCVs). Thus, we propose a battery leasing model to overcome this cost barrier, in which motorists own the vehicle without a battery, and the lifetime of the battery is shared by the subsequent motorists who lease the battery. We proposed a game model between a manufacturer and motorists and compared the battery leasing model with the traditional buyout model, calibrated with U.S. data. We found that, first, the battery leasing model promotes HFCV adoption; specifically, leasing battery significantly reduces motorists' costs and increases their utility, especially when battery cost is high. Compared to Mirai's lease option, our model motorists' costs could be reduced by 20%–42% currently, and 15%–27% in the future. Second, the battery leasing model operates better when hydrogen price and battery cost decrease, increasing adoption and manufacturer's profits. Finally, the battery leasing model is more profitable for manufacturers than the buyout model. In addition, low interest rates and high down payments will further extend the advantage of the battery lease model. This study deepens the understanding of the HFCV business model in decarbonizing the transport sector and the sharing economy in vehicle sharing.