Benz will switch to lithium iron phosphate batteries which are less expensive than nickel-based ones.
The switch will take place between 2024 and 2025.
The upside should be lower purchase pricing.
Like fossil fuels, there’s only a finite amount of nickel on the planet. This metal is instrumental in providing EVs with performance and range, the kind we might expect in a pricier or premium EV. Mercedes-Benz believes that future buyers of entry-level EQA and EQB won’t mind a lower purchase price despite a drop in range.
The thinking behind the decision has to do with the fact that all-out performance and longer ranges are not that important to consumers who do most of their driving in urban areas.
“We think there will be a lot of urban-oriented customers that do not need the E63 AMG,” CEO Ola Kallenius said, referring to Mercedes’ performance sedan. “For those entry-level positions, in the future, we are looking at” lithium iron phosphate batteries, he said according to Automotive News.
For the moment, the switch to lithium iron phosphate batteries will occur for the next iterations of Mercedes-Benz’s smaller vehicles between 2024 and 2025. Soaring prices for some metals will be less of an issue for far pricier EQS drivers.