Reuters writes that Elon Musk explained that "the vast majority of the heavy lifting for electrification will be iron-based cells." For its Semi electric truck model, Tesla previously announced that there will be a few variants, including one with around 800 kilometers of range and another, with around 500.

As for the upcoming affordable EV, Tesla plans to use a smaller lithium iron phosphate battery, with a capacity of 53kWh, compared to the Model Y and 3's 75kWh one.

The Model Y and 3 are also said to switch to the new chemistry in the future.

Nickel-based batteries are another alternative car makers take into account for EVs, since they are smaller, lighter and can hold more energy. Despite that, iron phosphate batteries pose less of a fire risk, meaning that they are safer to operate overall and the materials they incorporate are cheaper and more abundant.