Last year, Tesla CEO Elon Musk mentioned that he believes the energy density of iron phosphate (LFP) batteries have improved enough that it now makes sense to use the cheaper and cobalt-free batteries in its lower-end vehicles.

Furthermore, the CEO indicated that the use of LFP batteries also frees up more battery supply of lithium-ion chemistry cells using nickel cathode for Tesla’s other vehicle programs. //

Nickel is our biggest concern for scaling lithium-ion cell production. That’s why we are shifting standard range cars to an iron cathode. Plenty of iron (and lithium)! //

Battery cells with nickel cathodes have more energy and power density than cells using iron phosphate, hence that’s why Tesla is only using the latter in shorter-range electric vehicles.