This paper presents results on how the Equivalent Consumption Minimization Strategy (ECMS) penalty factor effects Lithium ion battery aging. The vehicle studied is the Honda Civic Hybrid. The battery used is A123 Systems’. Vehicle simulation using multiple combinations of highway and city drive cycles. For each combination of drive cycles, six ECMS penalty factor values are used. Battery aging is evaluated using a semi-empirical model combined with accumulated Ah-throughput method which uses, as an input, the battery state of charge trajectory from the vehicle simulations. The tradeoff between fuel cost and battery aging cost is explicitly displayed. In addition, the results provide insight into how driving behavior affects battery aging. The paper concludes with a discussion of the optimal balance between fuel cost and battery aging.