Gabrielle Coppola, Bloomberg »

Mercedes-Benz will shift to cheaper but less powerful batteries to contain soaring prices for some metals in its range of entry-level models.

The world’s biggest luxury-car maker will use lithium-iron-phosphate batteries for its next generation of models like the EQA and EQB from 2024 and 2025, Chief Executive Officer Ola Kallenius said in an interview in Atlanta.

The chemistry avoids using pricier nickel-based batteries that deliver performance and range in models like the EQS, the electric version of its flagship S-Class. Kallenius is betting consumers will accept shorter driving ranges for cheaper models as prices for key materials rise.

“We think there will be a lot of urban-oriented customers that don’t need the E63 AMG,” Kallenius said, referring to Mercedes’ performance sedan. “For those entry-level positions, in the future, we’re looking at” lithium-iron-phosphate batteries.

More »