Here is Volkswagen’s trick to sell its future electric car for €25,000

Volkswagen has confirmed to us that its next electric car priced at less than 25,000 euros, the Volkswagen ID.2, will use a special battery to reduce costs. His secret? A cobalt-free LFP chemistry, increasingly popular. But it doesn’t only have advantages.

Volkswagen ID. 2all // Source: Volkswagen

Volkswagen intends to hit hard on the affordable electric car. The battle plan: an electric car around 20,000 euros, which we imagine to be the Volkswagen ID.1. But also a car for less than 25,000 euros, the Volkswagen ID.2 (or electric Polo), which could well overshadow the Renault 5 E-Tech whose first deliveries will take place in December 2024.

An LFP battery for the ID.2

To achieve lower prices, Volkswagen has a very specific recipe, which it does not share with Renault at the moment. Two technical experts from the German manufacturer, Robin Hübner and Jochen Teckotte, announced to us that future electric cars based on the Volkswagen ID.2 will use battery cells based on cobalt-free LFP (lithium-iron-phosphate) chemistry.

This chemistry is very different from NMC (nickel-manganese-cobalt) and NCA (nickel-cobalt-aluminum) which are mainly found in electric cars. LFP chemistry is becoming more and more popular, especially among Chinese manufacturers. Its advantage? A cost per kWh much lower than other chemistries.

Volkswagen ID. 2All

A welcome interest when it comes to offering electric cars that are more affordable than the rest of the market. But LFP batteries have some disadvantages, starting with lower energy density. Which means that for the same amount of energy, they take up more space and are heavier than their NMC and NCA counterparts.

Multiple battery options

But that’s not a big deal, since it will allow Volkswagen to offer more affordable cars. The ID.2 should offer several battery options, but all will be LFP, the German manufacturer confirmed to us. The first rumors indicate 38 and 56 kWh for ranges of between 300 and 450 km.

Other electric cars based on the same platform (namely ID.2 SUV, but also Skoda Epiq and Cupra UrbanRebel) will logically share these different packs.

Battery of the future electric R5, for illustration
Renault 5 E-Tech battery, for illustration // Source: Renault

At Renault, the electric R5 E-Tech currently features a 52 kWh NMC chemistry battery. Later, in 2025, a 40 kWh battery, using the same chemistry, will be offered. We asked the manufacturer if it intended to offer an LFP battery to reduce costs even further. The company spokesperson then told us that it was a possibility, and which should finally materialize in the coming months.

In any case, the future Renault Twingo at 20,000 euros should have LFP batteries, just like the Volkswagen ID.1. However, you will have to be patient, since these two cars are not expected before 2027.


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