BMW Confirms LFP Batteries For Some Neue Klasse Electric Cars
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The company’s boss reveals certain EVs will get lithium-iron-phosphate (LFP) batteries, with China’s entry-level iX3 leading the way.
Article Summary
- LFP batteries are cheaper to produce, last longer, and offer better thermal stability, but have lower energy density.
- The China-exclusive BMW iX3 30L already uses LFP chemistry, while more expensive versions retain NMC batteries.
- CEO Milan Nedeljković says NMC batteries currently offer superior performance, particularly in terms of energy density and driving range.
BMW is preparing to expand its battery portfolio as it rolls out the Neue Klasse generation of electric vehicles. While the company has started its latest EV offensive with nickel-manganese-cobalt (NMC) batteries, it will eventually add lithium-iron-phosphate (LFP) chemistry to the mix.
Speaking during BMW Group’s Q3 2026 earnings call, CEO Milan Nedeljković confirmed that LFP batteries are coming, though their use will depend on the vehicle type and its intended purpose. Responding to a question about the company’s battery strategy, the number one in Munich explained that BMW is starting with NMC chemistry and cylindrical cells because it currently considers this technology superior in the market. He pointed to the impressive range figures achieved by the new iX3 and i3, including in China, as evidence that the approach is working.
However, BMW isn’t ignoring the cost advantages of LFP batteries. The CEO acknowledged that this chemistry offers a different cost structure but also comes with different range capabilities. As a result, the company will be selective about where it introduces the technology rather than offering it across every segment.
NMC And LFP Batteries Will Coexist
“With Neue Klasse, we are starting with the NMC technology and the cylindric batteries, and this technology is now superior in the market. We see that our range we can offer with the iX3 and the i3 are deeply impressing also in China, and that is why we start on that level. At the same time, and you are right, the LFP technology offers a different cost structure, but also different range. So we will add the LFP technology in our vehicles, but we will be very specific in which vehicle and for which purpose. And so it will come, but it will not be a generic exchange or a generic offer in all segments.”
In other words, don’t expect BMW to replace NMC batteries with LFP packs across the board. The two technologies will coexist, serving different purposes within the lineup.
The differences between the two technologies explain why BMW wants to keep both options available. NMC batteries use nickel, manganese, and cobalt in their cathodes. Their main advantage is higher energy density, allowing automakers to store more energy in a compact, lightweight battery pack. That’s particularly important for larger, more expensive vehicles where customers expect longer driving ranges.
LFP batteries, meanwhile, use lithium iron phosphate for the cathode, eliminating the need for nickel, cobalt, and manganese. This makes them cheaper to manufacture, with production costs generally around 20% lower than comparable NMC batteries. They also tend to last longer, resist thermal runaway better, and degrade more slowly over repeated charging cycles.
There are trade-offs, though. LFP batteries have lower energy density, meaning they need more space and weight to store the same amount of energy. They can also charge more slowly in cold weather. Consequently, NMC remains an attractive choice for vehicles where maximum range and performance take priority over manufacturing costs.
The Entry-Level iX3 In China Uses LFP Batteries
BMW has already demonstrated how it intends to make the two chemistries coexist. The China-exclusive iX3 30L uses an LFP battery, while the more expensive 40L and 50L versions retain NMC technology.
The entry-level electric SUV has a 77-kWh battery pack and a claimed range of 630 kilometers (391 miles) on China’s CLTC testing cycle. It starts at RMB 269,900, about $40,000 or €34,300.
Nedeljković didn’t identify which future models will adopt LFP chemistry or when those versions will arrive outside China. However, his comments make it clear that BMW sees a place for both technologies rather than treating them as competing solutions.
That’s probably the sensible approach. Not every electric BMW needs an enormous battery capable of delivering massive range. For customers who prioritize affordability over outright range, a cheaper LFP-powered version could make an EV considerably more accessible.
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