The first $25,000 EV from Jeep is a next-generation Renegade, parent company Stellantis revealed at its Investor Day on Thursday.
According to Autoblog, the compact SUV will launch with a fully electric variant that uses lower-cost lithium-iron-phosphate (LFP) battery chemistry compared to the more common nickel-manganese-cobalt chemistry, which offers more range and higher energy density.
Tax credits could be necessary for the new EV to reach the $25,000 mark, but there’s a catch. To qualify for tax credits, there would need to be a facility producing LFP batteries in North America. With many major carmakers turning to LFP to cut costs, several companies including ICL Group have already announced plans to build production facilities in the US to reduce dependency on batteries made in China.
According to C&EN, startup Nano One Materials finalized the purchase of a facility in Montreal in November 2022 and aims to introduce an improved, greener manufacturing process.
The new Renegade will likely launch after Jeep announces two of its six full EVs next year, with Stellantis CEO Carlos Tavares hinting that the new EV will use the company’s Smart Car platform.
Jeep had some other big reveals:
- The new generation of the Jeep Compass is coming by 2027.
- We can expect an unnamed midsize SUV, likely the new Cherokee or its successor under a different name.
- The Wrangler, Wagoneer, Gladiator, Grand Wagoneer, and Grand Cherokee will all see refreshes.
- By 2027, the Jeep lineup will include six full EVs, five plug-in hybrid variants, and a range-extended model.
- Two of the six full EVs will be announced next year.
- One will be an E- or D-segment vehicle, such as the Grand Cherokee or Cherokee. The other will be a D- or C-segment vehicle, such as the Compass and the next-gen version.
With the full-size Wagoneer S on sale before the end of 2024 and the Recon following in 2025, Jeep’s EVs strategy is developing in earnest after years of focusing on hybrids. Moreover, the new Renegade’s sub-$25K price point could upend Tesla and other companies that have promised affordable electric cars but have yet to deliver.