Daimler Group CEO Ola Kallenius said on Wednesday,Mercedes-Benz, its luxury car division, will switch to cheaper but less powerful lithium iron phosphate batteries to curb the soaring prices of certain metals in its entry-level models.
He said in an interview that Mercedes-Benz will use lithium iron phosphate batteries in its next-generation models such as EQA and EQB from 2024 and 2025, avoiding the more expensive nickel-based batteries used in EQS and other models. EQS is the electric version of Mercedes-Benz’s flagship S-Class.
Kang Linsong believes that as the price of key raw materials rises, consumers will accept shorter but cheaper models.
He said: “We believe that consumers in many cities will not need E63 AMG.” E63 AMG refers to Mercedes’ high-performance cars. “For those entry-level models, we will consider lithium iron phosphate in the future. Battery.”
Last week, Tesla CEO Musk announced that the company will use lithium iron phosphate batteries in its standard endurance models. Before that, Tesla had been using lithium iron phosphate batteries supplied by CATL in the Chinese market.