Stellantis Turns to LFP Batteries to Cut Electric Car Prices

Why LFP matters

Stellantis already uses LFP packs of 30, 44 or 54 kWh in its more affordable models built on the Smart Car platform: the Citroën ë-C3, ë-C3 Aircross, Opel Frontera and Fiat Grande Panda. These cars form the group's entry point in electric today. Most of the rest of its European electric range still relies on NMC batteries.

The appeal is cost. LFP batteries are about 40% cheaper to produce per kWh than NMC ones. Since the battery accounts for 25% to 40% of a vehicle's production cost, a cheaper chemistry can noticeably reduce the final price.

What comes next

Stellantis is also expected to use its new STLA One platform to spread LFP further. That platform will underpin the future electric Peugeot 208, expected at the end of 2027. It will have to face the Volkswagen ID. Polo, the Cupra Raval and the Renault 5 E-Tech.

For buyers, the change signals that price pressure from Chinese brands is reaching mainstream European models. Price remains the decisive argument in the end, even when range and charging speed weigh on the decision, and Stellantis is betting that cheaper cells will help it stay competitive in the small-car segment.