Renault Introduces Affordable Battery Solutions
Renault's electric mobility brand, Ampere, is taking a strategic approach to combat rising raw material costs and competition in the energy storage news market, particularly from Chinese companies. This new strategy includes the adoption of Lithium Iron Phosphate (LFP) batteries, advanced NMC batteries, and innovative designs like Cell-to-Pack and Cell-to-Chassis.
The shift towards LFP cells is a response to the fluctuating costs of NMC energy storage and the growing scale of Chinese companies using LFP batteries. Renault aims to offer an affordable version and a high-performance version of vehicles equipped with LFP batteries, beyond the new electric Renault Twingo and its Dacia sibling.
The compact crossover Renault Megane E-Tech will be the first to feature the new LFP option as part of its next model update. Ampere's strategy extends beyond cell chemistry, with a focus on optimising weight, space, and costs in future electric news vehicles.
LFP batteries are particularly suitable for compact and mid-size electric vehicles, where large ranges are less critical, but the purchase decision often depends on price. LFP offers advantages in terms of safety, raw material availability, and cost, but its capacity per weight and volume is lower than that of top NMC batteries.
To ensure a corresponding value chain for the new LFP cells, Renault plans to establish partnerships with battery manufacturers like LG Energy Solution (LGES) and CATL. LGES will start providing LFP batteries for Ampere from the end of 2025 via their plant in Poland, while CATL's counterparts will come from Hungary.
Ampere also aims to develop flexible pouch cells that can be installed in various vehicles. The assembly of battery packs will remain in France, localising the value chain at least partially. By 2030, Renault plans to have a fully established value chain with suppliers for the new LFP cells.
The practicality of the LFP concept, including its performance in cold temperatures, charging performance, and lifespan, will need to be proven in the coming years. Higher energy densities, like those of NMC cells, remain important for premium or performance models. However, for the mass market, the introduction of LFP cell chemistry and innovations like CTP are designed to make electric vehicles more affordable for a broader range of buyers.
According to the International Energy Agency, 75% of electric vehicles sold in China last year had LFP batteries, compared to just 10% in Europe. With this strategic move, Renault is positioning itself to capture a larger share of the growing electric vehicle news market, particularly in price-sensitive segments.
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