Fiat is making a major move to improve the 500e, its all-electric city car. Despite slower-than-expected sales, the automaker is set to introduce a significant update to the current-generation model, swapping out its existing battery for a new Lithium Iron Phosphate (LFP) unit. This upgrade is aimed at lowering production costs while improving efficiency, making the 500e a more attractive option in the competitive EV market.
Why LFP?
LFP batteries are gaining popularity due to their lower cost, longer lifespan, and improved safety compared to traditional lithium-ion batteries. While they generally have a lower energy density, advancements in technology are helping to close the gap. Fiat has partnered with leading battery supplier CATL to develop the new battery pack, ensuring improved durability and better overall performance for daily driving.
Investment & Market Impact
Fiat and Stellantis are investing €100 million (or about $108 million USD) into this battery upgrade. The goal is to make the 500e more competitive by extending its range and reducing manufacturing costs, which could lead to a lower price tag for consumers. With electric vehicle adoption facing challenges due to high prices and interest rates, this move could help Fiat gain traction in the EV space.
When Will It Arrive?
The new LFP battery is expected to be introduced in the coming years, though Fiat has not yet confirmed an exact launch date. The automaker is currently preparing to roll out a new hybrid version of the 500, set to begin production in November 2025 at the Stellantis Mirafiori Assembly Plant in Italy. The updated 500e with the LFP battery could follow shortly after, potentially arriving by 2026.
With this upgrade, Fiat hopes to position the 500e as a more practical and cost-effective choice for urban EV buyers. If the new battery delivers as promised, it could give the small electric hatchback the boost it needs to compete in an increasingly demanding market.
