Renault Partners with CATL and LG Energy to Develop Lower-Cost EV Batteries
Renault’s electric vehicle subsidiary, Ampere, has announced strategic partnerships with Chinese battery manufacturer CATL and South Korea’s LG Energy Solution to integrate lower-cost lithium iron phosphate (LFP) batteries into upcoming Renault and Alpine models. This initiative aims to diversify the automaker's battery portfolio, which currently relies on more expensive nickel cobalt manganese (NCM) chemistry, to better meet the growing demand for affordable electric vehicles. The primary objective is to reduce vehicle battery costs by approximately 20% by 2026. The move reflects a broader industry trend where LFP technology, dominated by Chinese firms like CATL and BYD, is gaining traction due to its cost-effectiveness. Recent data from SNE Research indicates that CATL and BYD held a combined 53.1% of the global battery market share in early 2024, with CATL showing significant growth in shipments outside China. By collaborating with both a leading Chinese supplier and a major South Korean competitor, Renault seeks to balance supply chain security and cost efficiency in its transition toward mass-market electrification.
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Renault Partners with CATL and LG Energy to Develop Lower-Cost EV Batteries
Renault’s electric vehicle subsidiary, Ampere, has announced strategic partnerships with Chinese battery manufacturer CATL and South Korea’s LG Energy Solution to integrate lower-cost lithium iron phosphate (LFP) batteries into upcoming Renault and Alpine models. This initiative aims to diversify the automaker's battery portfolio, which currently relies on more expensive nickel cobalt manganese (NCM) chemistry, to better meet the growing demand for affordable electric vehicles. The primary objective is to reduce vehicle battery costs by approximately 20% by 2026. The move reflects a broader industry trend where LFP technology, dominated by Chinese firms like CATL and BYD, is gaining traction due to its cost-effectiveness. Recent data from SNE Research indicates that CATL and BYD held a combined 53.1% of the global battery market share in early 2024, with CATL showing significant growth in shipments outside China. By collaborating with both a leading Chinese supplier and a major South Korean competitor, Renault seeks to balance supply chain security and cost efficiency in its transition toward mass-market electrification.
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