Route Monkey, Teesside University and Urban Foresight will work together to create a tool which combines manufacturer battery chemistry data with fleets’ usage and charging cycles to plot degradation over a vehicle’s lifecycle.

The aim is to work out more accurate vehicle residual values based on the wear on the battery, rather than adopting the traditional approach of using a worst case scenario. As well as reducing risk for fleets, the tool has the potential to cut leasing costs and make electric vehicles more attractive for business use.

Colin Ferguson, Route Monkey chief executive officer, explained: ‘Lease companies, insurance brokers and underwriters will benefit from the residual values generated by the software, which will help remove doubts over the long-term effects of battery degradation and replacement costs. These benefits can be passed on to potential purchases of EVs to help make ownership an increasingly enticing proposition.’

Match funding of £246,000 was provided through by the North East’s Collaborative Projects Fund, set up during 2013, and development will create 18 new jobs.

Dr. Colin Herron, managing director of Zero Carbon Futures, which oversees the Fund, said: ‘The fleet market is increasingly open to the benefits of running EVs, and this project will help provide true cost analysis for businesses and provide further incentives for increased uptake.’