To achieve climate neutrality ambitions, greenhouse gas emissions from the transport sector need to be reduced by at least 90% by 2050. To support industry and policy makers on mitigating actions on climate goals it is important to holistically compare and reduce life cycle environmental impacts of road passenger vehicles. A web‐based sustainability assessment tool named battery electric vehicle sustainability impact assessment model, BEVSIM, is developed to assess the environmental, circularity, and economic performance of the materials, sub‐systems, parts, and individual components of battery electric vehicles and internal combustion engine vehicles. This tool allows to measure and compare impacts resulting from recycling technologies, end‐of‐life scenarios, and future scenarios resulting from changes in grid mixes. This paper explains the purpose of the tool, its functionality and design as well as the underlying assumptions.