TL;DR
BMW plans to add lithium iron phosphate batteries to selected Neue Klasse electric vehicles, CEO Milan Nedeljkovic said on the company’s third-quarter earnings call. LFP cells generally cost less but provide lower energy density than the nickel-manganese-cobalt batteries used in most Neue Klasse vehicles; BMW has not identified which models will use them or said whether buyers will see lower prices.
BMW will add lithium iron phosphate (LFP) batteries to selected Neue Klasse electric vehicles, CEO Milan Nedeljkovic said during the company’s third-quarter earnings call. The move could give BMW a lower-cost battery option for some models, but the company has not named the vehicles, set a launch date outside China, or promised lower sticker prices.
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Nedeljkovic said BMW will choose LFP for specific vehicles and uses, rather than replace the nickel-manganese-cobalt (NMC) cells used in most Neue Klasse cars. He described NMC as better suited to delivering range, while LFP offers a different trade-off between cost and range. BMW has not disclosed how many vehicles will get the chemistry or whether the change will alter battery capacity or equipment.
BMW already sells an example of the mix in China. The entry-level, long-wheelbase iX3 30L uses a 77-kilowatt-hour LFP battery, while the more expensive 40L and 50L versions use NMC packs. BMW lists the 30L at a claimed 630 kilometers (391 miles) of CLTC range. That figure comes from China’s test cycle, which is more optimistic than WLTP and U.S. EPA estimates, so it should not be treated as a direct comparison with ratings from those systems.
BMW also has a compact, Europe-focused Neue Klasse EV planned for 2028. Its lower position in the lineup makes it a possible LFP candidate, but BMW has not confirmed that it will use the chemistry. The company’s separate battery-supply agreements with Samsung SDI in Europe and LG Energy Solution in the United States are due to begin toward the end of the decade; the reported agreements do not specify that the cells will be LFP.
A Lower-Cost Choice Within BMW’s Lineup
LFP could let BMW offer a less expensive version of an EV without making every model use the same battery chemistry. The appeal for buyers is a choice: pay less for a vehicle with a battery that prioritizes cost, or spend more for an NMC-powered version with greater range potential. That could matter most in smaller, more price-sensitive vehicles, where buyers may not need the range of BMW’s longer-distance models.
The chemistry brings trade-offs, not a guaranteed price cut. LFP cathodes use iron and phosphate rather than the nickel and cobalt used in NMC cells, which can reduce material costs. LFP batteries are also generally associated with long service life, thermal stability, and less degradation from frequent charging to 100%. But their lower energy density can make it harder to deliver long range in a given battery size. BMW has not said how much any vehicle might cost less, or whether savings would reach customers rather than offset other costs.
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BMW’s Two Chemistry Strategy
BMW’s Neue Klasse is its next generation of electric vehicles. The company has positioned its NMC-powered models around long range: the source report cites claimed figures of 435 miles for the iX3 and 468 miles for the i3. Those figures reflect the report’s stated ratings and should not be taken as a promise that every Neue Klasse model, market, or configuration will achieve the same range.
Using different battery chemistries for different versions is not unique to BMW. Mercedes’ electric CLA, described in the source report as a likely competitor to BMW’s planned smaller EV, offers an 85-kWh NMC option and an entry-level version with a 58-kWh LFP pack. That comparison shows how a manufacturer can set different range and price positions within one model line; it does not establish what BMW’s eventual configurations or prices will be.
BMW is also expanding its battery-cell sourcing across regions. Its announced supply arrangements include Samsung SDI in Europe and LG Energy Solution in the U.S., alongside existing European suppliers CATL and EVE Energy. The sourcing deals described in the report do not identify those cells as LFP, and local production by itself does not establish that a finished vehicle will cost less.
“We will add the LFP technology in our vehicles, but we will be very specific in which vehicle and for which purpose.”
— BMW CEO Milan Nedeljkovic
Models, Prices and Launch Dates
BMW has not said which Neue Klasse vehicles will receive LFP batteries, when those versions will reach markets outside China, or how their specifications will compare with NMC versions. The compact EV due in 2028 is a possible candidate based on its expected position in the lineup, but that is not a confirmed application.
It is also unknown whether any lower cell costs would translate into lower vehicle prices. BMW has not disclosed projected savings, battery capacities for future LFP models, or range figures under WLTP or EPA testing. The supply agreements cited by InsideEVs do not name LFP cells, so they do not establish which suppliers will make the batteries for these versions.
BMW’s Next Model and Battery Details
The next useful details will come when BMW identifies the specific vehicles, markets, and launch schedules for its LFP plans. The company’s announced compact Neue Klasse model is expected in 2028, but BMW has not confirmed that it will use LFP. Further specifications, including pack capacity, range-test ratings, and pricing, will be needed to show whether the chemistry leads to a more affordable choice for buyers.
BMW’s cell-supply arrangements with Samsung SDI and LG Energy Solution are scheduled to start toward the end of the decade, according to the source report. Those agreements may clarify the company’s regional sourcing plans, but they do not by themselves confirm the chemistry or price of any future vehicle.
Key Questions
Which BMW electric cars will get LFP batteries?
BMW has not named the models. The Chinese-market iX3 30L already uses an LFP battery; the smaller Neue Klasse EV planned for 2028 is a possible candidate, but BMW has not confirmed it.
Will LFP make BMW electric cars cheaper?
LFP cells generally use less costly cathode materials than NMC cells, which could help lower costs. BMW has not said whether those savings will reduce vehicle prices or given a price estimate.
What is the main trade-off between LFP and NMC batteries?
LFP generally offers a lower-cost chemistry, long service life, and thermal stability, but has lower energy density. NMC can be better suited to applications prioritizing longer range.
How much range does the LFP-powered iX3 30L have?
BMW’s China-market iX3 30L has a claimed 630 kilometers (391 miles) of CLTC range. CLTC ratings are more optimistic than WLTP and EPA figures, so this number is not directly comparable with ratings on those cycles.
Source: insideevs.com
