Renault to produce cheaper batteries without going through China

The Renault group is evolving its high-voltage battery strategy in the right direction. Until now, all Renault electric cars have been equipped with batteries with the so-called NMC (Nickel Manganese Cobalt) chemistry. While these batteries offer the best energy efficiency, they are more expensive than LFP (Lithium Iron Phosphate) batteries. Since then, LFP batteries have progressed enormously and have become a solid alternative to democratize the electric car without compromising on the autonomy of the models.

With a battery representing up to 30% of the cost of the electric vehicle, any gain on the cost of the battery is not neutral for the manufacturer and the end customer. The Renault group, through its subsidiary Ampère, has just made official the arrival of LFP batteries in the group’s strategy. And it is a ” revolution ” according to the press release of 1^ᵉʳ July 2024, but why?

A new chemistry, but above all a new integration into the car

Renault has already made a lot of progress on the issue of batteries, even if the evolution is not always visible to the general public, because it is particularly technical. For those who do not know how it works: several NMC battery cells are encapsulated in modules, which are then themselves integrated into the battery pack.

Renault has managed to reduce the number of modules needed to make up the batteries of its recent models (Scénic, and R5) compared to previous generations. This optimization already has a positive impact on the cost of the battery and the performance of the models.

LFP batteries will help Renault take another step forward by eliminating the need to package cells into modules. This step less still allows for substantial savings in battery manufacturing. The manufacturer could save up to 20% per battery. It is also a way of not penalizing cars equipped with an LFP battery with a lower range, since the available space is better used to carry energy.

Renault will thus directly integrate the cells in the “pouch” format into the battery pack. This is the principle already applied by BYD with its famous Blade batteries. If the chemistry is identical, the cell format is different. It will be particularly interesting to follow how Renault will proceed, with its partner LG, for the thermal management and repairability of these new battery packs.

Two conditions are met to take the step towards LFP batteries

French battery gigafactories are all focused on the production of NMC batteries, which pushes European manufacturers who want to integrate LFP batteries to source from China, which dominates the production of LFP batteries. This is particularly the case for Stellantis for the batteries of the Citroën ë-C3 (and all future versions). The Renault group has therefore sought a European alternative to continue to reduce the environmental impact of the production of its batteries.

Renault already has several partnerships established for batteries: AESC and Verkor will produce NMC batteries from Douai and Dunkirk. They are fully integrated into Renault’s manufacturing hub in the North of France. Verkor will mainly produce NMC cells for the most efficient and high-end vehicles (certainly Alpine). LG is a historic partner of Renault and already supplies NMC cells from Poland. What will change is that LG will also supply LFP cells from this European plant. Renault has also secured an agreement with CATL for LFP cells manufactured in Hungary.

It is not surprising that Renault is formalizing a strategy around LFP batteries. Luca de Meo, head of the Renault group, had already addressed the issue during the launch of Ampère and the presentation of the future Renault Twingo. If Renault has always opted for NMC batteries, including on the Dacia Spring, it is because the energy density of LFP cells was not yet sufficiently satisfactory. The progress made on this technology in 3 years has been significant, as confirmed by Gilles le Borgne, the group’s technology director, on Sud Radio on June 29. They will therefore be integrated into models in the Renault range from 2026.

According to this schedule, it is possible to imagine that the Renault Twingo will be the first car to get this new LFP battery. Batteries that should be offered as a priority on the brand’s city cars, which suggests that Renault 5 and Renault 4 could also offer it after the first versions delivered with NMC battery.

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