For plug-in hybrid electric vehicles or extended range electric vehicles, battery stored energy often cannot fully meet the travel needs, and the battery needs to stay in a charge-sustaining mode to allow for backup sources such as gasoline or diesel to power the vehicle. It is crucial to identify the optimal stateof-charge (SOC) value for the battery to maintain this charge-sustaining mode since this SOC has significant impact to battery degradation. In existing studies, Just-in-Time control proposes that this SOC should be maintained at 55% but without theoretical justification. With the help of a battery degradation model based on solid electrolyte interphase growth, this paper develops a method to decide the optimal SOC value for charge-sustaining mode. Following the principle of superposition, degradation during the battery discharging process is divided as a fixed degradation caused by the drop of SOC from maximum to minimum values during charge-depleting mode, and a dynamic degradation caused by the oscillation at the charge-sustaining SOC value. Then this oscillation-caused degradation is further modeled and minimized through the investigation of the side reaction current density. The optimal SOC value obtained will be the SOC at which the side reaction current density has the slowest changing rate. This SOC value indeed relies on battery parameters, charging/discharging current and ambient temperature, and a case study shows that the best range of SOC value is 36%~38% for a 1.8Ah SONY 18650 cell. An average SOC of 37% is therefore recommended for charge-sustaining mode considering the possible errors in SOC estimation. INDEX TERMS Plug-in hybrid electric vehicle, state-of-charge, charge-sustaining, solid electrolyte interphase