Volkswagen gears up to battle Chinese car brands like BYD, Chery, Geely, GWM, Leapmotor, MG, and Zeekr with revamped electric vehicle platform and cheaper batteries: report

Volkswagen is reportedly working on rolling out lithium iron phosphate (LFP) battery chemistry to its electric vehicles (EVs) from 2026 onwards.

As reported by Autocar, the first Volkswagen to pick up LFP batteries is the forthcoming Polo-sized ID.2 electric hatchback that’s due to launch in 2026.

After this, LFP batteries will reportedly be rolled out to all of Volkswagen’s existing range of ID. EVs as part of a move that will see the vehicles based on an updated platform called MEB Plus.

“The upgrade to MEB Plus comes next year, and we will roll out the cell-to-pack battery systems with LFP,” said Volkswagen CEO Thomas Shäfer to Autocar.

“That will be a major step forward in terms of cost for us. It's very important, and also in performance.

"We're very happy with that. It's all in plan. We will come in with MEB Plus across the models, including ID.3, ID.4, ID.7. They will have LFP.

"You can see this move towards LFP across the board, really, except for performance applications on the upper end. In the volume game, LFP is the technology.

"It will start with ID. 2 and then roll out through the models."

LFP battery chemistry is known to be cheaper to develop and has better thermal stability when compared to nickel metal cobalt (NMC) lithium-ion battery chemistry.

LFP batteries have been popularised by Tesla with its Chinese-made Model 3 electric sedan and Model Y electric SUV, though Chinese companies like BYD and CATL have been working and refining this technology for years.

Volkswagen LFP batteries will reportedly be made at a new battery factory in Salzgitter, Germany, which will also build NMC battery packs on a smaller scale until they’re phased out.

At this stage Volkswagen is yet to confirm any specifications for the new LFP batteries, though Autocar suggests it could increase range while lowering the vehicle price point.

Coinciding with this introduction of LFP battery chemistry to the wider Volkswagen ID. range, it’s reported there will be a design refresh too.

Volkswagen research and development (R&D) boss, Kai Grunitz, told Autocar last year this ID. design refresh will bring “huge improvements” that show Volkswagen is “going back to where we came from”.

“Design is your first touchpoint. That's what excites people," said Mr Grunitz.

"You have to have an iconic design that people connect with, and it doesn't matter what kind of drivetrain is underneath. This fascination with 'is it electric or petrol?' doesn't matter if you have an iconic car. You can see it in many examples."

Despite Volkswagen ID. range of EVs dating back to 2020, Australia only started receiving the first model, the ID. Buzz, after many setbacks and delays in late 2024. The ID.4 and ID.5 electric SUVs followed earlier this year.

At this stage it’s unclear if Volkswagen Australia intends to introduce any further ID. models.