Mercedes-Benz will change to cheaper but fewer impressive batteries to include soaring prices for some metals in its variety of entry-degree versions.
The automaker will use lithium iron phosphate batteries for its subsequent technology of types such as the EQA and EQB from 2024 and 2025, CEO Ola Kallenius claimed in an job interview in Atlanta.
The chemistry avoids employing pricier nickel-centered batteries that produce overall performance and assortment in types this sort of as the EQS, the total-electrical edition of its flagship S-Course.
Kallenius is betting buyers will take shorter driving ranges for more cost-effective products as rates for essential elements increase.
“We feel there will be a good deal of urban-oriented shoppers that do not want the E63 AMG,” Kallenius explained, referring to Mercedes’ general performance sedan. “For those entry-level positions, in the upcoming, we are hunting at” lithium iron phosphate batteries, he stated..
Mercedes is plowing extra than 40 billion euros ($47 billion) into electrifying its products range this 10 years. Its strategies incorporate developing battery vehicles on three entire-electrical car or truck platforms from 2025 and environment up eight battery factories throughout the world with companions.
Most of the vehicle field relies on nickel and cobalt in lithium ion batteries to boost electric motor vehicle functionality. However provides of both equally materials are constrained. Nickel, which will help supply energy and array, is also prone to fireplace, a risk the sector is paying out billions to command.
Tesla CEO Elon Musk said past 7 days the automaker is shifting to lithium iron phosphate batteries globally for standard-selection models. Tesla makes use of LFP batteries in China supplied by Modern Amperex Technological innovation Co., or CATL, which has delivered methods to eke out better performance from the factors.
CATL also supplies the nickel-primarily based batteries in the Mercedes EQS. CATL and Mercedes have an agreement that involves LFP batteries utilizing CATL’s “mobile-to-pack” engineering, which saves on body weight and cost by integrating cells straight into a battery pack.
Between battery joint ventures, prolonged-term contracts on uncooked supplies, and bets on breakthrough engineering, Kallenius reported he is assured Mercedes will have sufficient batteries to ability its new lineup of electric powered automobiles.
“We are included, certainly,” he said “But, it is really not wherever you can just lean back again and say, ‘Well everything’s likely to consider care of by itself.’ You have to actively interact and attempt to manage the supply chain as we enter into the age of the electrical vehicle.”