A lithium-ion battery employing a novel phase change material (PCM) thermal management system was designed for an electric scooter. Passive thermal management systems using PCM can control the temperature excursions and maintain temperature uniformity in Li-ion batteries without the use of active cooling components such as a fan, a blower or a pump found in air/liquid-cooling systems. Hence, the advantages of a compact, lightweight, and energy efficient system can be achieved with this novel form of thermal management system. Simulation results are shown for a Li-ion battery sub-module consisting of nine 18650 Li-ion cells surrounded by PCM with a melting point between 41 and 44°C. The use of aluminum foam within the PCM and fins attached to the battery module were studied to overcome the low thermal conductivity of the PCM and the low natural convection heat transfer coefficient. The comparative results of the PCM performance in the presence of Al-foam and Al-fins are shown. The battery module is also simulated for summer and winter conditions. The effect of air-cooling on the Li-ion battery was also studied. These simulation results demonstrate the successful use of the PCM as a potential candidate for thermal management solution in electric scooter applications and therefore for other electric vehicle applications.