French automaker Renault believes it has the key to more affordable electric vehicle batteries, and its new LFP promises to cut production costs by 40%. The result? New, desirable electric vehicles priced under $20,000 that aren't made in China.
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Spanish news website Motorpasión reports that Renault, like Ford, is adopting more affordable lithium iron phosphate (LFP) battery chemistries that are safer, cheaper, and less dependent on the mining of rare earths compared to conventional lithium-ion batteries.
This is a big change from the recent past. Because they have a lower energy density and weigh a little more than their NMC (nickel-manganese-cobalt) lithium-ion counterparts, European car manufacturers have been dismissive of them. However, with Chinese carmakers such as BYD, MG and Leapmotor flooding Europe with affordable LFP-powered electric vehicles, this stigma is quickly disappearing.
The stability, battery life, and cost advantages of LFP have become too attractive to ignore — especially as global lithium and nickel prices continue to fluctuate, making long-term business forecasts difficult. Renault’s decision to adopt LFP is less about the Chinese technology than its economics, and a recognition that affordability is the real barrier to mass adoption.
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That was the thinking behind Renault's relaunch of the R5 E-TECH (sold as the Le Car in the US) and the announcement that a new Twingo is coming soon.
It was also the thinking behind the French automaker's decision to launch its new vehicle software development sub-brand Ampere in 2023. Back then, the stated goals were to improve Renault's software-defined vehicles and reduce the cost of building new electric vehicles by 40% — something the change in LFP chemistries will allow them to do.
“Creating a new company model specializing in electric vehicles and software that works from today: How can we best our revolution and the audacity of our teams?” asked Luca de Meo, CEO of Renault Group, at the launch of Ampere. He answered his question by saying, “We instilled a sustainable corporate vision and ensured that it is reflected in every process and product. We built on the Group’s strengths and reviewed the way we do everything. We created a tight-knit team and worked for the collective. We leveraged our French roots and became the leader in Europe. We reaffirmed our commitment to our customers, our planet and those who live on it.”
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Renault is set to launch an all-new, fully electric version of its iconic Twingo small car from the 1990s in the coming months. The car is aimed squarely at the BYD Dolphin and is expected to have a starting price of around 17,000 euros (just under 20,000 US dollars).
