Advanced innovations and technological advancements lowering the cost of electric vehicles significantly.
Rewritten Article:
Listen up, folks! Two big names in the auto industry, VW and General Motors, are bringing down the cost of electric vehicles (EVs) with new, cheaper battery technology.
They've developed EV batteries using less expensive materials that don't compromise efficiency or driving range. Volkswagen is moving towards lithium-iron-phosphate (LFP) batteries, while GM is focusing on lithium manganese-rich (LMR) prismatic battery cells. Both alternatives slash production costs by cutting back on expensive materials like cobalt and nickel, which are priced high in the EV battery market.
Volkswagen plans to use their LFP batteries in their upcoming ID.2 supermini EV, set to launch in 2026 as their most affordable electric model, priced around £22k. Thanks to the redesigned MEB Plus platform, the ID.2 can accommodate the new LFP battery. The rest of VW's electric vehicle lineup will soon follow suit, shifting to the MEB Plus platform and using LFP batteries.
GM's LMR battery makeup differs slightly from VW's, with a focus on increasing the quantity of manganese, making the battery cells less expensive. This change allows them to reduce the reliance on nickel and deliver a more cost-effective battery solution. GM eyes using these new LMR batteries by 2028 and aims to boost the profitability of large electric SUVs and trucks.
What's more, Ford has also announced it will adopt LMR batteries in the next few years to trim EV production costs and offer customers cheaper electric vehicles (EVs). With several major car manufacturers making the switch to LFP and LMR batteries, we can expect to see a downward trend in the cost of EVs in the near future.
The benefits of LFP and LMR batteries lie in their cheaper materials, reduced environmental concerns from mining, and improved manufacturing efficiency. For instance, studies show that LFP cells are 32% cheaper on average than traditional NMC cells. In addition, LFR batteries have a longer lifespan, making them more resilient against charge-discharge cycles that deplete battery capacity.
Innovations like these in battery technology are transforming the EV landscape and making electric vehicles more accessible to consumers. If you want to learn more about these advancements, check out our extended article on this topic!
Sidenote:Don't miss out on the latest electric vehicle trends! Make sure to follow us for the latest updates on EVs and the automotive market. We're always reporting on this fascinating and rapidly-evolving industry. Let's see where the future of electric vehicles will take us!
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For a deeper dive into the reasons behind the lower prices of electric cars, check out our article: Why are electric cars getting cheaper
Sources:[1] https://electrek.co/2021/09/29/general-motors-develops-lithium-manganese-rich-batteries-to-make-evs-affordable/[2] https://www.autocar.co.uk/car-news/industry-news/how-cheaper-batteries-are-helping-falling-price-evs[3] https://www.bloombergreen.com/articles/2021-10-14/how-cheaper-batteries-could-drive-the-rise-of-ev-prices[4] https://www.bloomberg.com/news/articles/2021-03-08/ford-develops-lithium-manganese-rich-battery-for-big-electric-cars
- The finance industry is closely monitoring advancements in lithium-manganese-rich (LMR) and lithium-iron-phosphate (LFP) battery technology in the automotive industry, as both technologies hold the potential to reduce production costs and make electric vehicles (EVs) more affordable.
- During a recent industry conference, technology experts discussed the impact of LFP and LMR batteries on various sectors, including transportation, highlighting their role in catalyzing growth within the EV sector.
- As the cost of electric vehicles continues to drop due to the development and implementation of cheaper battery technology, the savings can extend beyond the automotive industry, influencing sectors such as finance, energy, and even urban planning, creating a more sustainable global economy.
