Major car manufacturers are leveraging advanced technology to prioritise a different formulation for electric vehicle (EV) batteries, according to Environmental Leader. Ford, VW, Tesla and others are looking to replace nickel or cobalt batteries with lithium-iron-phosphate (LFP), as the components are cheaper.

CEO of VW, Herbert Diess, has committed to using LFP in Volkswagen’s entry-level EVs in order to lower costs. Ford has also confirmed that it will be using these new types of batteries in commercial EVs.

Additionally, Tesla founder Elon Musk has announced the company will be making a ‘long-term shift’ towards LFP.

Importantly, making this change also helps to reduce human rights issues over cobalt mining.

LFP isn’t new technology, but it has helped boost EV adoption thanks to lowering battery costs.

In 2020, lithium-ion battery pack prices dropped 89% in real terms to $137/kWh (compared to 2010 prices), and average prices will be close to $100/kWh by 2023, according to BloombergNEF

At the $100/kWh price point, BNEF expects vehicle manufacturers will be able to produce and sell EVs at price parity with non-EV vehicles in some markets.