Asian Tech Press (OCT 28) -- According to media reports, Mercedes-Benz will shift to cheaper but less powerful lithium iron phosphate batteries to curb the impact of soaring ternary battery costs on Mercedes-Benz's entry-level electric vehicle pricing.

Daimler CEO Ola Kallenius said Mercedes-Benz will use lithium iron phosphate batteries in its next-generation entry-level models such as the EQA and EQB from 2024 to 2025. The electric version of Mercedes' flagship S-Class model uses more expensive nickel-based batteries with better performance and longer range.

Kallenius believes that as the price of core materials for power batteries rises, consumers will accept cheaper models with shorter driving ranges.

At the same time, the Volkswagen Group, Ford and other traditional car companies have also decided that the low-cost entry-level models will use lithium iron phosphate batteries. This has also prompted the power battery industry to shift research and development focus to lithium iron phosphate.