BMW Group is preparing to add lithium-iron-phosphate (LFP) batteries to selected Neue Klasse electric vehicles while retaining nickel-manganese-cobalt (NMC) cells elsewhere in its lineup. During the company’s Q3 2026 earnings call, CEO Milan Nedeljković said deployment would depend on the vehicle and its intended purpose.
BMW is beginning the Neue Klasse rollout with cylindrical NMC cells, which Nedeljković described as superior in the current market. He cited the range figures of the new iX3 and i3, including in China, as evidence supporting the approach. The company does not plan to replace NMC batteries across its lineup or offer LFP packs in every segment.
The two chemistries provide different cost and performance characteristics. NMC cathodes use nickel, manganese, and cobalt, supporting higher energy density and allowing more energy to be stored in a compact, lightweight pack. LFP cathodes eliminate nickel, cobalt, and manganese. According to the source, their production costs are generally around 20% lower than those of comparable NMC batteries. LFP batteries also tend to offer longer service life, slower degradation over repeated charging cycles, and greater resistance to thermal runaway.
However, LFP cells have lower energy density, requiring more space and weight to store the same amount of energy. They can also charge more slowly in cold conditions. BMW therefore intends to use NMC technology where driving range and performance take priority, while applying LFP chemistry selectively based on vehicle requirements.
BMW has already adopted this approach in China. The China-exclusive iX3 30L uses a 77-kWh LFP battery and has a claimed range of 630 kilometers (391 miles) under the CLTC testing cycle. It starts at RMB 269,900, approximately $40,000 or €34,300. The more expensive 40L and 50L versions retain NMC batteries.
Nedeljković did not identify which future models would receive LFP batteries or when additional LFP-powered versions could become available outside China.
Source: bmwblog.com
