Skip advert
Advertisement

Rejoice! Electric VWs getting cheaper thanks to breakthrough battery tech

VW is ready to use new battery technology to drive down the cost of its new, affordable electric cars

Volkswagen electric cars are set to become more affordable as the firm rolls out new LFP battery tech – packing good energy density and lighter weight – from its new small EVs to the ID.3, ID.4 and ID.7. 

The Polo-sized ID.2 – going public in autumn 2025 – should have an entry price close to £20,000, and the 2027 ID.1 production version of the ID.Every1 concept could come in around £17,000. Today’s cheapest electric Volkswagen is the £30,000 ID.3 hatchback – but this could get some pricing wriggle room as it adopts the cheaper new tech.

VW’s baby BEVs are introducing lithium iron phosphate (LFP) batteries, which use raw materials that are typically cheaper than the Nickel Manganese Cobalt (NMC) cathode design powering the current ID range. LFP isn’t as energy dense as NMC but Volkswagen will overcome that by cramming more cells into its cars using a new ‘cell-to-pack’ system. And the existing MEB platform – which underpins all electric Vee-dubs – will be revamped into an 'MEB Plus' version accommodating the new battery pack for early 2026. 

Advertisement - Article continues below

"We decided to upgrade to MEB Plus next year, and to roll out the cell-to-pack battery systems with LFP. It'll be a major step forward in terms of cost for us," Volkswagen brand boss Thomas Schäfer told Auto Express in a meeting at the Financial Times' Future of the Car Summit.

Skip advert
Advertisement
Skip advert
Advertisement - Article continues below

"It's all in the plan. We come in with MEB Plus across the models including ID.3, ID.4, ID.7 – all have LFP. In the volume game, LFP is the technology." And the changes won't just be under the skin, with the revamped ID.3 getting the ID.2's new family look. 

Cell-to-pack battery design

The cell-to-pack design is similar to the Blade battery of Chinese car maker BYD, which layers long cells across its battery pack to boost energy density. The MEB31 battery module in today’s VW EVs needs a series of metal ribs to hold the rectangular modules in place, unnecessary structure the new design can jettison. 

“The usable space is much better, we can pack in more energy density and it’s lighter,” VW engineer Malte Schulz told Auto Express in VW's Wolfsburg HQ. As a result, VW can get sufficient battery cells into the ID.1’s short wheelbase, while trimming some weight given that the Up! replacement has only a 94bhp motor.

The new cell-to-pack design is scalable to boost cost competitiveness: the same layout can also accommodate higher performance NMC cells for Porsche and Audi models. For MEB Plus they won’t be a ‘cell-to-body’ design – where the battery pack forms a structural part of the car, as in BYD’s Seal – though Volkswagen says this will come in a later stage. 

Batteries made in Europe

The batteries will be manufactured in Europe, with pilot production underway at the Salzgitter gigafactory in Lower Saxony owned by VW spin-off PowerCo. 

“The battery cell is the combustion chamber of tomorrow,” says Volkswagen Group CEO Oliver Blume. “It’s a core competency for VW Group, so we need the engineering knowledge and to own production. Salzgitter will ramp up this year.”

The plant will have a capacity of around 40 gigawatthours, and cell production will be split between LFP and NMC chemistries. At Salzgitter, "the majority will be LFP but it will also make NMC," Schäfer confirmed to Auto Express. "You can see the move towards LFP across the board, except for performance applications in upper end segments."  

Another 60gWh will come on stream at PowerCo’s second European plant in Valencia, Spain, in 2026. A third factory is underway in Ontario, Canada, with up to 90gWh, which is due to open in 2027. That gives PowerCo and Volkswagen a capacity of around 200gWh.

Did you know you can sell your car with Auto Express? Get the highest bid from our network of over 5,500 dealers and we'll do the rest. Click here to try Auto Express Sell My Car now... 

Skip advert
Advertisement
Phil McNamara Editor at large Auto Express

Phil is Auto Express’ editor-at-large: he keeps close to car companies, finding out about new cars and researching the stories that matter to readers. He’s reported on cars for more than 25 years as editor of Car, Autocar’s news editor and he’s written for Car Design News and T3. 

Skip advert
Advertisement

Recommended

RIP Volkswagen? Not a chance, thanks to four brilliant new cars
Opinion - VW ID Polo

RIP Volkswagen? Not a chance, thanks to four brilliant new cars

Mike Rutherford thinks the ID.Polo, ID. Cross, Cupra Raval and Skoda Epiq are the right cars at the right time for the Volkswagen Group
Opinion
25 Oct 2026
Volkswagen’s culling of 75 models by 2035 was inevitable, says CEO
Volkswagen Polo - front cornering

Volkswagen’s culling of 75 models by 2035 was inevitable, says CEO

Brand boss Thomas Schäfer says halving the number of models made by the VW Group is part of a “natural transition”
News
14 Oct 2026
Retro cars get boring fast, says Volkswagen design boss
Volkswagen ID. Buzz - front cornering

Retro cars get boring fast, says Volkswagen design boss

While VW’s latest cars play off customers’ nostalgia and love for the brand, the brand has avoided going quite as retro as rival Renault
News
12 Oct 2026
Which cars qualify for the electric car grant? Full ECG list with our best (and worst) picks
Electric car charging mega test - Renault 5 front angled

Which cars qualify for the electric car grant? Full ECG list with our best (and worst) picks

In excess of 60 electric cars are now eligible for a Government-funded discount. Which should you go for from the ever-growing list?
News
8 Oct 2026

Most Popular

New Toyota hybrid engine on its way, and it could return over 85mpg
Next-gen Toyota hybrid engine

New Toyota hybrid engine on its way, and it could return over 85mpg

Japanese giant has put all of its engineering might behind new 1.5-litre engine, and is now teasing us with what to expect
News
28 Oct 2026
Streamlined Mazda 3 range drops unusual Skyactiv-X engine
2027 Mazda 3 - front 3/4

Streamlined Mazda 3 range drops unusual Skyactiv-X engine

Mazda’s innovative high-compression petrol engine has been ditched from hatch line-up, which now features a new trim level
News
29 Oct 2026
New Hyundai Ioniq 6 facelift is £5k cheaper than a Tesla Model 3
Hyundai Ioniq 6 facelift - front show

New Hyundai Ioniq 6 facelift is £5k cheaper than a Tesla Model 3

Hyundai’s facelifted electric saloon benefits from the full Electric Car Grant and can be had in both single and dual-motor forms
News
29 Oct 2026

Find a car with the experts