The environmental implications of converting vehicles powered by Internal Combustion Engines (ICE) to battery powered and hybrid battery/ICE powered are evaluated for the first time in the case of Chile, one of the worldwide leaders in the production of lithium (Li) required for manufacturing of Li-ion batteries. The economic and environmental metrics were evaluated by techno-economic analysis (TEA) and Life Cycle Assessment (LCA) tools - SuperPro Designer and Gabi®. The system boundary includes both the renewable and nonrenewable energy sources available in Chile and indirect energy consumptions and GHG emissions due to Li mining and Li-ion battery manufacturing. All the major input data required for TEA and LCA were generated using Autonomie vehicle modeling software. This study compares economic and environmental indicators of three vehicle models for the case of Chile including compact, mid-size, and a light duty truck. Autonomie was utilized to predict the fuel economy for the hybrid electric vehicle (HEV) and electric vehicle (EV) for each of the three vehicle types. The baseline fuel economy without vehicle electrification for each case was 44, 29, and 19 mpg, respectively. The LCA and TEA results suggest that vehicle electrification for the case of Chile would improve the metrics of sustainability and economic impacts at the nationwide level. The electrification of light duty truck, for instance, reduces the nationwide GHG emissions by 32% and 71%, for the HEV and EV scenarios, respectively. Use of renewable energies in vehicle electrification, including hydroelectric and photovoltaic energies, significantly reduces GHG emissions of the country. The results of this research demonstrate that vehicle electrification has a significant impact not only in the reduction of GHG emissions but also in the economy of the country. Overall, this research will help policy makers and scientific communities to develop strategies to promote and research HEV and EV.