Mercedes-Benz has revealed that it believes consumers looking at its entry-level EV offerings won’t be too bothered by the shorter range figure. Company chairman Ola Källenius says that future owners are fine with sacrificing range for a more competitive price.
“We think there will be a lot of urban-oriented customers that do not need the E63 AMG,” Källenius said. “For those entry-level positions, in the future, we are looking at lithium iron phosphate batteries,”
As reported by Automotive News Europe, Mercedes-Benz will make the shift to cheaper but less power batteries for its entry-level electrified vehicles in order to compact the soaring prices of certain metals needed for lithium-ion packs. The lithium iron phosphate energy source will be introduced to the EQA and EQB from 2024 and 2025.
Mercedes-Benz has in investing more than €40 billion (R700 billion) into electrifying its product range for this decade. Included in this strategy is building battery cars on three full-electric vehicle platforms from 2025 and setting up eight battery factories worldwide with partners.
Currently, most of the automotive industry is making use of nickel and cobalt in lithium ion batteries to boost electric car performance. However, supplies of both materials are constrained. Nickel, which helps provide power and range, is also prone to fire, a risk the industry is spending billions to control.
CATL currently has an agreement with Mercedes-Benz that includes LFP batteries using CATL’s “cell-to-pack” engineering, which saves on weight and cost by integrating cells directly into a battery pack.
Between battery joint ventures, long-term contracts on raw materials and strategising breakthrough technology, Kallenius said he is confident Mercedes-Benz will have enough batteries to power its new lineup of electric cars.
“We are covered, yes, but it’s not where you can just lean back and say, ‘Well everything’s going to take care of itself.’ You have to actively engage and try to manage the supply chain as we enter into the age of the electric car.”
