The new version of the Volkswagen ID.3 electric hatchback was revealed in China with an unusual lithium iron phosphate (LFP) battery. While this chemistry is common for Chinese EVs, ID.3 and other German ID. models use only more expensive nickel manganese cobalt (NMC) ternary packs.

The LFP-powered ID.3 was revealed by a local regulator under the Ministry of Industry and Information Technology (MIIT) as Volkswagen applied for homologation of the new ID.3.

Aside from changing the NMC for the LFP battery pack, the new ID.3 is the same as the previous version. The 5-seater hatchback has dimensions 4261/1778/1568 mm (length/width/height) and wheelbase 2765 mm. It will drive on 18″ or optional 20″ wheels. The single rear motor has a power of 125 kW.

NMC batteries have higher energy density than LFP ones. However, aside from higher prices, there are more downs: NMC uses many precious metals, especially cobalt, whose mining techniques are controversial in many countries, especially in Kongo.

On the other hand, LFP has a lower energy density. However, it is cobalt-free and also cheaper. Recently, many EV makers moved to using LFP, including Tesla, who started using LFP batteries even for their German-made Model Y sourced from BYD.

In China, the market leader CATL is a clear winner in the NMC segment. However, they are far from dominating in LFP as they closely compete with BYD and its Blade batteries.

Editor’s comment

ID.3 is under pressure in China. When the car was launched in China in late 2021, the official price was about 25,000 USD. However, due to low sales, massive local EV competition, lack of connectivity, and digital experience, Volkswagen had to lower the price significantly. The 2024 annual update starts at 108,900 yuan (15,370 USD) at dealers for the 52.8 kWh NMC version with a 450 km CLTC range. The LFP battery pack will help SAIC-Volkswagen, which manufactures ID.3 in China, to lower the cost further.