[INTERVIEW] Cheaper Chinese batteries won't impact CLA quality, Mercedes CTO says

Mercedes CTO says new CLA model will feature more affordable Chinese LFP batteries as it holds discussions with Korean companies for future partnerships.

Mercedes-Benz Chief Technology Officer Markus Schafer speaks during a recent interview with the Korea JoongAng Daily on the sidelines of CES 2024 in Las Vegas. [SARAH CHEA]

LAS VEGAS — Mercedes-Benz is well-prepared in the intensifying EV price war with its upcoming CLA model having a more affordable Chinese battery.

"We're working on an affordable version of an EV based on our new MMA [Mercedes-Benz Modular Architecture] platform made of lithium iron phosphate [LFP] batteries," said Mercedes-Benz Chief Technology Officer Markus Schafer during a recent interview with the Korea JoongAng Daily on the sidelines of CES 2024 in Las Vegas.

"But we are confident we will not lose the quality and good performance."

Mercedes displayed the CLA concept based on the new platform at the tech show, which ended on Jan. 12. The CLA is slated to be released in 2025, with an LFP battery version as an option.

LFP batteries are around 40 percent cheaper than nickel-cobalt-manganese (NCM) batteries, for which Korean makers hold a firmer standing. Around 90 percent of the world's LFP batteries are made by Chinese companies, with CATL and BYD racing for the top two spots.

Visitors look at the CLA concept at the Mercedes-Benz booth at CES 2024 in Las Vegas. [NEWS1]

Schafer also said he held various business discussions with Korean companies during the CES trade show and is open to announcing more partnerships in the future.

"I already met with many Korean companies, both on the battery side and on the electronics side," Schafer said. "We are in very close contact to see what's available and what's the preference here as Korea is one of the biggest markets for us."

Mercedes is already working to apply the TMAP Infotainment system, a favorable navigation service among Koreans, in its future vehicles hitting Korean roads.

"The new E-class will be the first car to have the TMAP system," Schafer said.

Mercedes is slated to launch the new E-class in Korea on Friday. Korea is the largest market for the E-class in the world. A total of 23,640 E-class cars were sold last year in Korea alone, becoming the No. 1 imported car.

Schafer also emphasized the importance of AI in the mobility sector as the German automaker rolled out its upgraded Mercedes-Benz User Experience (MBUX) virtual assistant that can take on four personalities — natural, predictive, personal and empathetic — at the trade show.

Drivers can choose one of the four depending on the type of conversations they want to have with their AI assistants. The predictive mode, for example, can play the morning's headlines when a driver enters their vehicle or offer to dial into a meeting if their calendar indicates that they are running late.

"So, basically in every aspect we're using AI in the car. The car understands the routine you're having every day so you can drive the same route every day and the car is about to make suggestions," Schafer said. "But I think one of the biggest applications will be in autonomous driving."

When asked about the date of cars with Level 3 technology launching in Korea, Schafer did not specify the time. Mercedes is one of two only companies with Honda Motor that have succeeded in developing Level 3 cars.

"The challenge for us is on Level 3 that every county has different regulations and requirements," Schafer said. "But looking at the Korean market, I’m very open to R&D if the customer requirements are there."

BY SARAH CHEA [chea.sarah@joongang.co.kr]