Mercedes-Benz will change to much less expensive but a lot less impressive batteries to incorporate soaring selling prices for some metals in its assortment of entry-amount products.

The automaker will use lithium iron phosphate batteries for its following technology of designs this sort of as the EQA and EQB from 2024 and 2025, CEO Ola Kallenius explained in an interview in Atlanta.

The chemistry avoids working with pricier nickel-based mostly batteries that supply efficiency and range in styles these types of as the EQS, the full-electric model of its flagship S-Class.

Kallenius is betting consumers will accept shorter driving ranges for more cost-effective versions as costs for key supplies rise.

 “We consider there will be a large amount of urban-oriented shoppers that do not have to have the E63 AMG,” Kallenius stated, referring to Mercedes’ overall performance sedan. “For these entry-amount positions, in the future, we are seeking at” lithium iron phosphate batteries, he reported..

Mercedes is plowing far more than 40 billion euros ($47 billion) into electrifying its solution vary this 10 years. Its programs include developing battery vehicles on 3 comprehensive-electric car platforms from 2025 and setting up 8 battery factories all over the world with associates.

Most of the automobile industry depends on nickel and cobalt in lithium ion batteries to increase electrical car or truck performance. Nevertheless supplies of both equally resources are constrained. Nickel, which assists deliver ability and assortment, is also prone to fireplace, a possibility the business is paying billions to control.

Tesla CEO Elon Musk said final 7 days the automaker is shifting to lithium iron phosphate batteries globally for common-assortment models. Tesla makes use of LFP batteries in China provided by Contemporary Amperex Technology Co., or CATL, which has delivered strategies to eke out better performance from the parts.

CATL also supplies the nickel-based batteries in the Mercedes EQS. CATL and Mercedes have an settlement that contains LFP batteries applying CATL’s “cell-to-pack” engineering, which saves on excess weight and price tag by integrating cells directly into a battery pack.

Concerning battery joint ventures, prolonged-phrase contracts on raw components, and bets on breakthrough engineering, Kallenius stated he is confident Mercedes will have ample batteries to electric power its new lineup of electric cars and trucks.

“We are protected, yes,” he claimed “But, it is really not the place you can just lean again and say, ‘Well everything’s heading to get treatment of itself.’ You have to actively engage and try to take care of the source chain as we enter into the age of the electrical automobile.”

By Tara