Daimler Group CEO Ola Kallenius said its luxury car unit Mercedes-Benz would use cheaper but less powerful lithium iron phosphate batteries in response to soaring prices for certain metals in its entry-level models.
Mercedes will use lithium iron phosphate batteries in its next-generation models such as EQA and EQB from 2024 and 2025, avoiding the more expensive nickel-based batteries used in models such as the EQS. The EQS is an electric version of Mercedes’ flagship S-Class model.
At present, Mercedes-Benz has five pure trams in The Chinese market, EQA, EQB, EQC, EQS, and MERCEDES-EQ. The first three are pure electric SUVs. EQA and EQB are Mercedes’ entry-level product lines, and Mercedes may use lithium iron phosphate batteries in subsequent versions of these two cars.
According to Kang, Mercedes plans to launch a model with a lithium iron phosphate battery, taking into account the soaring price of the metal, a critical raw material for three-way batteries, as well as consumers’ willingness to accept cheaper models with shorter range.
As competition intensifies in the global electric vehicle industry, more and more automakers are opting for cheaper and more stable lithium iron phosphate batteries in their entry-level models. For example, Tesla is equipped with a lithium iron phosphate battery in its Model Y Model. Xiaopeng Automobile also launched an entry-level Model equipped with a lithium iron phosphate battery after its Model opened the market. Different car companies have chosen to change the battery technology route to reduce costs further and expand their market share.
At the same time, Volkswagen Group, Ford, and other traditional car companies have used lithium iron phosphate batteries in low-cost entry-level models. Several car companies expressed their interest in lithium iron phosphate, which also prompted the research and development focus of the power battery industry to shift to lithium iron phosphate. The pattern of three-way lithium batteries used to be the king in the battery field may change in the future.