This paper introduces a new topology using a multi-source inverter with the intention of reducing the battery current and weight, while enhancing the battery life and increasing the driving range for plug-in electric vehicles, with the combination of a battery and an ultracapacitor (UC) as storage devices. The proposed topology interconnects the UC and battery directly to the three-phase load with a single-stage conversion using an inverter. The battery life is considerably reduced due to excess (peak) current drawn by the load, and these peak load current requirements are met by connecting the ultracapacitor to the battery, controlled through an inverter. Here, the battery is used to cater to the needs of constant profile energy demands, and the UC is used to meet the dynamic peak load profile. This system is highly efficient and cost-effective when compared to a contemporary system with a single power source. Through a comparative analysis, the cost-effectiveness of the proposed energy management system (EMS) is explained in this paper. Energy and power exchange are implemented with an open-loop control strategy using the PSIM simulation environment, and the system is developed with a hardware prototype using different modes of inverter control, which reduces the average battery current to 27% compared to the conventional case. The driving range of electric vehicles is extended using active power exchange between load and the sources. The dynamics of the ultracapacitor gives a quick response, with battery current shared by the ultracapacitor. As a result, the battery current is reduced, thereby enhancing the driving cycle. With the prototype, the results of the proposed topology are validated.