BMW will expand use of relatively inexpensive lithium iron phosphate (LFP) batteries on its next-generation electric-vehicle platform, Neue Klasse. It plans to apply long-range nickel-manganese-cobalt (NMC) batteries and LFP batteries by model to broaden price options.

On Nov. 9, EV-focused outlet InsideEVs reported that Milan Nedeljkovic (밀란 네델코비치), CEO of BMW, said during a third-quarter earnings call that the company would add LFP batteries to Neue Klasse electric vehicles. He said the company would specify where it applies them depending on the vehicle and use, and that it would not apply them across all models. BMW did not disclose which models outside China would use the batteries or when, and did not give a firm answer on whether lower battery costs would lead to lower vehicle selling prices.

BMW assesses that the cylindrical NMC batteries fitted to most Neue Klasse models are stronger on driving range. LFP, by contrast, offers a different balance between cost and range. In China, the entry-level iX3 30L uses a 77 kilowatt-hour LFP battery, while the higher-end 40L and 50L use NMC batteries. The iX3 30L has a 630-km driving range under China's CLTC standard. CLTC tends to measure longer driving ranges than WLTP or the U.S. EPA.

The biggest advantage of LFP batteries is cost competitiveness. That is because they use relatively cheap iron and phosphate in the cathode instead of nickel and cobalt. They also offer a long lifespan and high thermal stability, and relatively less performance degradation even with repeated frequent fast-charging to 100%. Their lower energy density means NMC batteries are more suitable for models where long-distance driving is important.

Likely candidates for LFP include derivative versions of existing models and a small Neue Klasse electric vehicle due to launch in 2028. BMW has previously said it would introduce a small electric car aimed at the European market in 2028. As price competitiveness is important for an entry-level model, the possibility of using LFP has been raised, but specific adoption has not yet been confirmed.

Mercedes-Benz's electric CLA is a case in which battery options are split within the same model. It offers a version with an 85 kWh NMC battery and another with a 58 kWh LFP battery, allowing buyers to choose according to whether they prioritise price or driving range.

BMW is also expanding its battery supply chain. From the late 2020s, Samsung SDI will supply sixth-generation (Gen6) battery cells in Europe, and LG Energy Solution will supply them in the United States. Samsung SDI will join the European supply chain as a supplier alongside CATL and EVE Energy. BMW did not specify the battery cells to be supplied under the contracts as LFP. Expanding local production also does not guarantee an immediate fall in battery prices.