Providing new variants with LFP batteries is a way for some EV makers to chop costs, and Xpeng’s LFP model of the P7i, launched final month, has lowered the beginning value by RMB 26,000 yuan.
(Picture credit score: CnEVPost)
Nio (NYSE: NIO) is submitting so as to add a lithium iron phosphate (LFP) battery choice to its autos, in what could possibly be considered one of its newest efforts to show a revenue and lower prices.
China’s Ministry of Trade and Data Know-how (MIIT) in the present day launched its newest catalog of fashions that can be allowed to be offered in China, in addition to many filings from automakers for adjustments in car specs, for public remark. The general public can submit suggestions between December 9 and December 15.
Fourteen Nio fashions — together with eight presently on sale and 6 beforehand offered — noticed adjustments to car specs, based on paperwork reviewed by CnEVPost.
All of those fashions have added the LFP battery possibility, with the provider of battery cells and assemblies being Chinese language energy cell large CATL.
It is vital to notice that Nio’s fashions differ from the overwhelming majority of different automotive corporations’ electrical autos (EVs) in that they assist battery swap, to allow them to use the most recent packs, even when they had been launched just a few years in the past.
For EVs, the ability cell choices are normally ternary (NCM) cells and LFP cells.
Ternary cells provide greater power density and higher winter vary efficiency however at a better value and better threat of thermal runaway.
LFP batteries sometimes have decrease power density and worse winter vary efficiency, however decrease value and higher thermal stability.
Over the previous few years, ternary batteries have been the selection for high-end fashions and in lots of instances greater trim ranges as a result of their means to supply greater vary.
The packs circulating in Nio’s battery swap community initially solely had ternary batteries due to the high-end market the corporate was focusing on from the beginning.
On September 23, 2021, Nio introduced the launch of a 75-kWh commonplace vary hybrid battery pack, utilizing a mixture of the widespread ternary and LFP cells.
Beforehand EV makers’ battery packs had both ternary or LFP cells, Nio was the primary EV maker to make use of each ternary in addition to lithium iron phosphate supplies in its packs.
The pack delivers longer winter vary and correct state of cost (SoC) estimates supported by Nio’s proprietary expertise, offering the identical efficiency as Li-ion ternary batteries, the corporate stated on the time.
Nio had designed full thermal administration software program in addition to a {hardware} system for the brand new pack, which permits the pack to cut back mileage loss in chilly temperatures by 25 % in comparison with its LFP counterpart, it beforehand stated.
If Nio begins providing LFP batteries for its fashions, it’s anticipated to considerably scale back the price of the autos, which might permit for decrease promoting costs.
Nio diminished the costs of its total mannequin lineup by RMB 30,000 yuan ($4,200) on June 12 by chopping the beforehand free battery swap entitlement.
Since then, costs for its fashions have remained secure, though its native counterparts have tried to spice up gross sales by chopping costs or providing incentives.
Providing new variations of current fashions with LFP batteries is a method to assist some EV makers decrease costs.
For instance, Nio’s native counterpart Xpeng (NYSE: XPEV) launched new variants of its flagship sedan, the P7i, with LFP battery packs on November 6, reducing the beginning value by RMB 26,000 yuan.
Costs of energy batteries have been on a gradual decline up to now this yr, together with the autumn of lithium carbonate, a key uncooked materials.
Amid falling battery costs, the value of LFP battery cells has been about 10 % decrease than the value of ternary battery cells, based on market analysis agency TrendForce.
In November, the value of sq. ternary batteries was RMB 0.55 per Wh, whereas LFP battery cells had been RMB 0.5 per Wh, based on TrendForce.
($1 = RMB 7.1656)
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