Volkswagen Bets Big on Budget-Friendly EVs
Volkswagen is making moves to bring more affordable electric vehicles to the global market—and it starts with the 2026 ID.2. The compact EV will debut a new battery chemistry and platform that could dramatically cut prices across VW’s electric lineup.
LFP Batteries: Lower Cost, Lower Drama
The big news? VW is switching to lithium-iron-phosphate (LFP) batteries for the ID.2 and future models. These batteries don’t offer the same range as nickel-manganese-cobalt (NMC) ones, but they’re far cheaper and more durable. That’s why they’ve already taken over the Chinese EV market.
The shift means less worry about cobalt sourcing and less wear and tear over time. Cheaper, simpler, and more stable—exactly what budget EVs need.
Say Hello to MEB Plus
The ID.2 won’t just be riding on cheaper batteries. It will also be the first to use VW’s new MEB Plus platform—an upgraded version of its current EV architecture. MEB Plus will underpin other models like the ID.3, ID.4, and ID.7, making it a cornerstone of Volkswagen’s electric future.
According to VW, the MEB Plus platform will offer quicker production times and better scalability, bringing down the cost of everything from software to assembly.
Will the U.S. Get These Cheaper EVs?
Here’s the catch: the ID.2 likely won’t come to the U.S. And it’s unclear how VW plans to source the LFP batteries for North American production. The Inflation Reduction Act (IRA) makes U.S. battery manufacturing essential to qualify for tax incentives, and right now, VW’s new LFP packs will come from Salzgitter, Germany.
Could a U.S.-based joint battery plant with Rivian or Xpeng be on the horizon? It’s possible. But until VW reveals more, the fate of cheaper EVs in America remains a bit foggy.
Countdown to 2026
One thing is certain: Volkswagen is serious about cutting EV prices. With MEB Plus and LFP batteries, the German automaker is finally making a move that could put them back in the EV race.
