Everything We Know So Far About Jeep’s $25,000 Electric SUV

Key Takeaways

• Jeep plans to introduce 6 new electric vehicles by 2027, beginning with an affordable Renegade model under $25,000.
• The Renegade EV will be built in the U.S. on a new “multi-energy” platform that can handle a variety of powertrain technologies.
• The entry-level EV will use low-cost Lithium-Iron-Phosphate batteries, cutting 25% of battery pack costs.

Jeep officials confirmed last week that they will not only launch a half-dozen new battery-electric vehicles by 2027 but will include a model starting at under $25,000 after factoring in federal tax credits, CarBuzz reported.

And we’ve learned plenty more about that “affordable” model which will be based off a next-generation Jeep Renegade. Like the old, gas model bearing that name, the EV will fall into the subcompact, or “B” segment.

Much like the Jeep Wagoneer S launched last month, the Renegade EV will be underpinned by a new “multi-energy” platform capable of using multiple powertrain technologies. That means there could be gas, hybrid or plug-in versions, as well, though the EV is likely to adopt a distinct design of its own.

Putting EVs Back on Track

The entry-level EV will help Jeep address one of the two biggest issues slowing the adoption of zero-emission vehicles, said Carlos Tavares, CEO of Jeep parent Stellantis: range anxiety and affordability. The average price paid by an EV buyer in May came to $56,648, according to Kelley Blue Book, about $10,000 more than the typical new vehicle. Jeep’s first all-electric model, the Wagoneer S Launch Edition, starts around $72,000.

Only a handful of EVs currently come in below $30,000 – a list that includes the new Chevrolet Equinox EV – and, only then, after factoring in federal tax credits.

Made in America

Tavares first hinted at the plans for an affordable Jeep EV during a conference in New York City late last month, adding some select details during a conference for investors at the U.S. headquarters of Stellantis on Thursday.

He confirmed that the $25,000 price target will factor in $7,500 in federal tax credits, as well. That will require Jeep to “respect” the local sourcing mandates included in the Inflation Reduction Act, Tavares said.

The IRA says EVs can only qualify if they are assembled in the US or a handful of approved trade partners, including Mexico and Canada. Their batteries – as well as key materials including lithium, manganese and cobalt – must also be locally sourced.

Low-Cost Batteries

Batteries are the single most expensive component in an electric vehicle. To bring production costs down, Tavares said, the Renegade EV will utilize lithium-iron-phosphate, or LFP, chemistry, rather than the more familiar lithium-ion technology used in most of today’s electric vehicles, including the Jeep Wagoneer S.

That will shave about 25% off the price of a battery pack – though LFP cells are less energy dense, meaning a vehicle either needs a bigger pack or sacrifices range when compared to models using lithium-ion batteries.

Currently, there are no sources for American-made LFP cells, China’s CATL being the technology’s biggest supplier. Stellantis may seek to produce those batteries itself at one of the three plants it has confirmed it will set up in North America: one in Canada and two in the US.

New Multi-Energy Platform

The Euro-American automaker has broken from the industry pack when it comes to electrifying its line-up. A number of competitors, including General Motors and Volkswagen, are focused on flipping directly from internal combustion engines, or ICE, directly to EVs – though GM now plans a small number of plug-in hybrids to serve as a bridge to pure battery models over the next few years. Most new battery-powered models are being based off of skateboard-style platforms only designed for electric propulsion.

Stellantis, however, plans to use a mix of different electrified options. Jeep, in particular, will offer six different powertrain technologies, brand boss Antonio Filosa told CarBuzz last month: ICE, mild hybrids, conventional hybrids, plug-in hybrids, range extenders and pure EVs.

To do that, “We made the right call,” Tavares said on Thursday, opting for more flexible “multi-energy” platforms that can use any of those drivetrain technologies. There will be several of these platforms, including one dubbed STLA Large used for the Jeep Wagoneer S.

The Brain

Neither Tavares nor Filosa would say which platform will be used for the Jeep Renegade EV. But there are several options, starting with the Smart Car technology first introduced with the launch of the Citroen eC3 in Europe this year. According to Tavares, it’s about 30% cheaper to build than the older EV platforms used by Stellantis.

Another option is the STLA Small platform still being developed. One plus is that it will make use of other technology the automaker is developing, starting with the STLA Brain.

Today’s automobiles are computers on wheels, using scores of sensors and digital controls scattered all over the vehicle. Each may have a standalone microprocessor. That not only adds to the cost but makes it difficult for them all to work together. Tesla, on the other hand, adopted a centralized computing system that controls all those digital components. The STLA Brain system takes the same approach. It’s still a work in progress but is expected to be ready in time for the Jeep Renegade EV.

Jeep’s Electrified Future

Jeep is expected to become the fastest-growing among the 14 different Stellantis brands, officials said, with a target of increasing its global sales volume by 50% this decade. It is counting on electrified models to do much of the heavy lifting.

It currently offers 10 nameplates worldwide, including its first all-electric model, the Avenger, in Europe. Jeep’s plug-in hybrids have scored with consumers in the US. The Wrangler 4xe is the country’s best-selling PHEV, the Grand Cherokee 4xe ranked second.

By 2027, Jeep will offer 13 nameplates, including a new midsize SUV widely expected to revive the Cherokee badge. It will add a number of new plug-ins, starting with the Gladiator 4xe, as well as first-ever range-extended models, versions of the Wagoneer and Grand Wagoneer. And, just three years from now, it expects to have fully six all-electric models in its line-up.