Volkswagen plans to update its ID.4 SUV model in response to intensifying competition from Chinese automakers.
Volkswagen is set to revolutionize its ID series of electric vehicles (EVs) with the introduction of lithium-iron-phosphate (LFP) batteries. The German automaker announced that the development of LFP batteries for the ID series will commence next year, with production scheduled to start in Spain from 2027.
The company's decision to adopt LFP technology comes as it faces growing competition from Chinese brands like Geely, Leapmotor, and BYD. In an effort to stay competitive, Volkswagen is reported to roll out LFP batteries to its existing line-up of ID electric vehicles.
The LFP batteries will first be implemented in the ID.4 mid-size electric SUV, which is scheduled for a significant mid-life update in late 2026. This update will mark a complete overhaul of the ID.4's interior, with the exterior sporting cleaner, swooping styling. The updated ID.4 may also follow the design of the ID.2all concept, which features physical buttons and switchgear.
Volkswagen CEO Thomas Shafer announced that the upgrade to the MEB Plus platform will occur next year. The rollout of LFP batteries will start with the ID.2 model and then be implemented across other models, including the ID.3, ID.4, and ID.7. The vehicles based on the updated MEB Plus platform will also receive LFP batteries.
LFP batteries are cheaper to develop and have better thermal stability compared to nickel metal cobalt (NMC) lithium-ion battery chemistry. This shift towards LFP technology is a major step forward for Volkswagen in terms of cost and performance.
The initial production of these LFP cells will take place in Salzgitter, Germany, at a new battery factory. Initially, the Salzgitter factory will produce both LFP and NMC battery packs, with the latter being phased out over time. From 2027, production of the LFP cells will shift to Spain.
The use of LFP technology has been popularized by Tesla and Chinese companies like BYD and CATL. Volkswagen's decision to adopt this technology is a strategic move to keep pace with the industry's advancements and maintain its position in the competitive EV market.
