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BMW plans to expand its use of lower-cost lithium iron phosphate batteries in selected Neue Klasse electric vehicles, CEO Milan Nedeljkovic said during the company’s third-quarter earnings call. BMW has not named the models or confirmed when the technology will arrive outside China, and it has not said whether savings will reduce sticker prices.
BMW plans to use lower-cost lithium iron phosphate (LFP) batteries in selected Neue Klasse electric vehicles, CEO Milan Nedeljkovic said during the company’s third-quarter earnings call. The move could support less expensive versions of some BMW EVs, but the company has not identified the models, set a rollout date outside China, or promised lower vehicle prices.
Nedeljkovic said BMW will choose LFP applications according to the vehicle and its intended use. The company considers the cylindrical nickel-manganese-cobalt (NMC) cells used in most Neue Klasse vehicles better suited to delivering range, while LFP offers a different balance between cost and range. He did not identify which upcoming models will receive the chemistry.
BMW already sells an LFP-equipped vehicle in China: the entry-level, long-wheelbase iX3 30L, with a 77-kilowatt-hour battery. BMW claims a range of 630 kilometers, or about 391 miles, under the Chinese CLTC test cycle. That figure should not be directly equated with estimates under WLTP or EPA testing, which use different procedures. The more expensive iX3 40L and 50L versions use NMC batteries.
The company has separately confirmed a compact electric Neue Klasse model for 2028, aimed at the European market. Its smaller size and more price-conscious positioning could make it a candidate for LFP, but BMW has not said it will use that battery chemistry. Nor has it confirmed that lower cell costs would be passed on to buyers through lower list prices.
More Battery Choices, Not Yet Lower Prices
LFP batteries can give automakers a way to offer a lower-cost version of an EV without changing the vehicle line-up entirely. Their cathodes use iron and phosphate rather than the nickel and cobalt used in NMC cells, materials that contribute to NMC battery costs. LFP cells are also generally associated with long service life and thermal stability, although performance varies by battery design and vehicle.
The trade-off is lower energy density, which can mean a larger or heavier battery is needed to deliver the same range. That helps explain BMW’s stated approach: use NMC where its range characteristics suit the vehicle and consider LFP for models where purchase cost and more moderate range matter more. For buyers, the potential benefit is a lower entry price; the actual price and range differences remain unknown.
BMW’s decision does not establish that its EVs will become inexpensive compared with mainstream-brand alternatives. The company has not disclosed expected savings, battery capacity for future LFP versions, or how much of any cell-cost reduction would reach customers. The development signals a broader choice of battery configurations, not a confirmed price cut.
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China Offers an Early Example
The Chinese iX3 30L provides a current example of BMW pairing LFP with an entry-level version of a model while reserving NMC for higher-priced variants. Its stated 630-kilometer CLTC range is a claim under China’s test cycle, which tends to produce higher figures than WLTP and EPA measures. BMW has not said whether the same configuration will be sold in other markets.
Other automakers have also used different battery chemistries within one model line. The source report points to the electric Mercedes-Benz CLA, which offers an 85-kWh NMC option and an entry-level version with a 58-kWh LFP pack. That provides a relevant comparison for how different battery choices might let customers weigh purchase cost against range, but it does not confirm BMW’s future product plans.
BMW is also broadening its cell supply relationships. It has announced plans for Samsung SDI to supply Gen6 cells from Europe and for LG Energy Solution to supply cells from the United States toward the end of the decade. Samsung joins CATL and EVE Energy in BMW’s European cell-supply network. The announced agreements do not specify that those suppliers will provide LFP cells.
““We will add the LFP technology in our vehicles, but we will be very specific in which vehicle and for which purpose.””
— Milan Nedeljkovic, BMW CEO, during the company’s third-quarter earnings call
Models, Prices and Rollout Remain Open
BMW has not named the next vehicles that will use LFP, confirmed whether any will be sold outside China, or provided a launch schedule beyond the separate confirmation that a compact Neue Klasse EV is due in 2028. The compact model is a possible candidate, not a confirmed LFP vehicle.
The company also has not said how much less an LFP-equipped EV might cost, whether any cell savings would lower retail prices, or what range future versions would deliver. Its announced cell-supply partnerships do not identify which battery chemistries the suppliers will provide. Those details will be needed to judge the effect on buyers and BMW’s regional production plans.
Watch for Model and Pricing Details
The next useful information would be a BMW announcement naming the vehicles, markets and launch timing for LFP versions. Details on battery capacity, certified range and pricing would show whether the chemistry produces a meaningful lower-cost option and how it compares with NMC versions.
BMW’s compact Neue Klasse model is scheduled for 2028, but the company has not linked that timetable to LFP deployment. Future updates on its Gen6 cell sourcing may clarify suppliers and production locations; the agreements already announced do not establish that those cells will be LFP.
Key Questions
Which BMW models will get LFP batteries?
BMW has not named future models. The company already sells the iX3 30L in China with a 77-kWh LFP battery, but it has not confirmed additional models or markets.
Will LFP make BMW electric cars cheaper?
It could lower battery costs, but BMW has not promised lower sticker prices or disclosed expected savings. Any effect on vehicle pricing is not yet confirmed.
Could the compact Neue Klasse EV due in 2028 use LFP?
It is a possible candidate because BMW has described the model as a compact EV for a more affordable segment. However, BMW has not confirmed its battery chemistry.
How does LFP differ from NMC?
LFP uses iron and phosphate in its cathode instead of nickel and cobalt, and is generally associated with lower cost and good longevity. Its lower energy density can make it less suitable where maximum range is the priority.
Source: insideevs.com
