Volkswagen ID.3 gains new LFP battery pack to keep up with cheaper EVs in China

Volkswagen is launching a new ID.3 model in China with an LFP battery pack as it looks to compete with lower-priced rivals. Chinese automakers like CATL and BYD dominate the LFP battery market, but VW hopes the new model can help spark sales in the world’s largest EV market.

After delivering 6.52 million vehicles through the first nine months of 2024, down nearly 3% from last year, Volkswagen blamed a “particularly intense” Chinese market.

Although the company has delivered 27% more EVs in China through September, VW’s overall vehicle sales are down by double-digits. Foreign automakers face stiff competition from domestic companies like BYD, with electric cars like the Seagull EV starting under $10,000.

After launching the ID.3 in 2021, prices started around $25,000. However, an influx of cheaper (and many times more advanced) EVs caused Volkswagen to drastically cut prices to keep up.

Volkswagen slashed ID.3 prices last summer after watching its lead slip in China. The VW ID.3 could be bought through a limited-time offer for as little as $17,500 (125,900 yuan). The price cut helped boost demand, securing over 10,000 orders by the end of the month.

The 2024 VW ID.3 starts even lower at around $15,400 (108,900 yuan), but an even cheaper version is poised to hit the market.

Volkswagen to launch new ID.3 with an LFP battery pack

According to a new filing with China’s Ministry of Industry and Information Technology (MIIT), a new Volkswagen ID.3 will arrive with a Lithium Iron Phosphate (LFP) battery pack.

Although LFP batteries are common in Chinese EVs, German automakers like VW typically use Nickel Manganese Cobalt (NMC). NMC batteries are more expensive because they require more precious metals but have a higher energy density than LFP.

Several automakers like Tesla are already moving toward LFP batteries, including the Model Y in Germany.

Others, like Hyundai Motor (including Kia), are doubling down on the tech, promising to unlock higher energy density at a lower cost.

Outside of the battery, the new Volkswagen ID.3 appears to be the same as the current model. At 4,261 mm long, 1,778 mm wide, and 1,568 mm tall with a wheelbase of 2,765 mm, the ID.3 is a direct rival to BYD’s Dolphin (4,290 mm x L, 1,770 mm x W, 1,570 mm x H).

With the 2025 BYD Dolphin starting under $14,000 (99,800 yuan), Volkswagen looks to level the playing field with a lower-priced ID.3 on its way.

Source: CarNewsChina, MIIT