Chinese electric automaker Nio submitted an application to introduce lithium iron phosphate (LFP) battery technology to its electric vehicles, according to the latest documents released by the Ministry of Industry and Information Technology (MIIT). The move is apparently part of the automaker’s efforts to lower its EV costs and improve profitability.
The MIIT published the catalog of vehicle models it authorized for sale in the Chinese market and multiple filings from companies for vehicle specification updates for public comment until December 15, Batteries News reported.
Changes
Nio is apparently seeking regulatory approval to change the specifications of its fourteen models, including eight currently available and six previously sold, as per the filing.
All these Nio EVs displayed the addition of the LFP battery pack developed by Chinese battery giant CATL.
Nio has yet to disclose plans for the launch of the new battery technology. Nonetheless, it will undoubtedly aid the high-volume, low-margin brand in reducing overall electric vehicle costs.
It will further lessen the costs of the already cheap hybrid LFP battery Nio uses today, as noted by Electrek.
LFP battery: Pros and cons
Apart from reducing battery costs, LFP battery chemistry offers improved thermal stability and slows cycle degradation.
Batteries make up at least 20-40% of an EV’s total value, and this percentage tends to increase in lower-cost, higher-volume models. That said, even a slight reduction in cost can add up quickly.
However, it has lower energy density compared to other battery chemistries. Therefore, it can only deliver a lower range for a certain cell volume in an electric vehicle.
Nio’s battery tech
Nio’s electric vehicles substantially differ from most models in the market today due to its battery swapping capability. It enables them to utilize the latest battery packs even if the models launched a few years ago already.
Nio currently has two battery packs, including the 75 kWh and 100 kWh. It employs NMC (Nickel Manganese Cobalt) battery chemistry for the majority of its models, but it also uses a hybrid LFP battery. It consists of four nickel-chemistry modules to counteract the poor performance of LFP in cold weather.
That said, the new LFP batteries that appeared in the regulatory filing are likely pure LFP chemistry.
NIO’s potential shift to LFP batteries could result in significant cost reductions, similar to what domestic rival XPeng experienced. That said, Chinese customers could enjoy thousands of dollars in price decline once Nio launches the new LFP batteries in its models. It remains vague whether the company will offer the LFP battery-equipped models in other markets beyond China.
