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Tesla’s cobalt-free battery strategy is making Elon Musk an actual “iron man”

(Credit: Tesla)

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Tesla quietly revealed in its Q1 report that nearly half the vehicles it produced in the first quarter of 2022 were equipped with cobalt-free lithium iron phosphate (LFP) batteries. The news, however, was overshadowed in the news cycle, particularly by Tesla’s $19 billion revenue and CEO Elon Musk’s acquisition of social media platform Twitter. 

LFP batteries are not a new innovation, but it has not been used as much in areas outside China. According to data from Benchmark Mineral Intelligence (BMI), only 3% of electric vehicle batteries in the United States and Canada and 6% in the European Union are iron-based. In China, however, LFP batteries command 44% of the EV market. 

Tesla currently uses LFP batteries in its base vehicles, though Elon Musk has hinted that the EV company will be using more cobalt-free cells in more products. Considering the prolific nature of Tesla and its influence on the market, it would not be surprising if other EV makers also began exploring the option of using LFP batteries for their own cars. 

Amusingly enough, by playing a notable part in LFP battery adoption, it appears that Elon Musk has effectively become an “iron man” of sorts. 

According to a Reuters review of the EV market, Tesla is not alone in its support for LFP batteries. Over a dozen companies are reportedly considering building LFP battery cell plants in the United States and Europe in the next three years. And things will likely only pick up from there. Mujeeb Ijaz, the founder of US battery startup Our Next Energy, noted that LFP has a future in the EV industry. 

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“I think lithium iron phosphate has a new life. It has a clear and long-term advantage for the electric vehicle industry,” he said. 

There was a reason why LFP batteries took this long to gain ground. While LFP cells use cheaper materials, and while they could be consistently charged fully without much degradation, they tend to be larger, heavier, and generally hold less energy than nickel-cobalt-manganese (NCM) cells. Thus, electric cars that use LFP batteries tend to have shorter range. 

Tesla’s decision to use LFP batteries for its base vehicles could be considered a strategic move. Since the company is electively the undisputed leader in the electric vehicle sector, the roughly 150,000 cars it produced last quarter that were equipped with LFP batteries took a number of analysts and specialists by surprise. And similar to other innovations from the company, such as its use of megacasts, it appears that other carmakers will soon be following suit. 

EV startup Fisker, for one, noted that it is planning on using LFP batteries for its lower-range SUVs. CEO Henrik Fisker noted that the company is in discussions with battery suppliers from the United States, Canada, or Mexico. Fisker noted that LFP batteries are perfect for vehicles that are used by city-dwellers. 

“If I never leave Los Angeles, I never leave San Francisco, I never leave London … I think that’s where LFP comes in really well,” he said. 

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Audi CEO Markus Duesmann, in comments that were shared last March, also spoke highly of LFP cells’ potential. “It may well be that we will see LFP in a larger portion of the fleet in the medium term. After the war, a new situation will emerge; we will adapt to that and choose battery technologies and specifications accordingly,” he said. 

Even BMW, which is arguably lagging in the electric vehicle race considering the pace of rivals such as Volkswagen and Daimler, is looking towards LFP batteries. Recent comments from BMW chief procurement officer Joachim Post indicated that the German automaker was analyzing the merits of iron-based cells. “We’re looking at different technologies to minimize the use of resources and also we’re looking at optimizing chemistry,” the executive said. 

*Quotes courtesy of Reuters.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Cybertruck

Tesla announces delivery timeline for Cybertruck in new market

“Coming soon! Estimated deliveries in Q1 for UAE.”

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Credit: Tesla

Tesla announced its delivery timeline for the Cybertruck as it heads to a new market.

Tesla Cybertruck deliveries started in the United States and Canada back in late 2023. However, the company has been looking to expand the all-electric pickup to new markets, including the Middle East, for which it opened up orders for earlier this year.

Initially, Tesla planned to launch deliveries late this year, but there has been a slight adjustment to the timeline, and the company now anticipates the pickup to make its way to the first adopters in the United Arab Emirates in Q1 2026.

This was confirmed by the Tesla Cybertruck program’s lead engineer, Wes Morrill:

Tesla first opened orders for the Cybertruck in the Middle East in mid-September of this year. It will be priced at AED 404,900 for the Dual Motor All-Wheel-Drive ($110,254) and AED 454,900 ($123,869) for the Cyberbeast trim.

The Cybertruck has been a highly anticipated vehicle in many parts of the world, but its ability to be sold in various regions is what is truly causing delays in the company’s efforts to bring the electric pickup worldwide.

Tesla confirms Cybertruck will make its way out of North America this year

In Europe, various agencies have challenged the design of the Cybertruck, arguing that it is unsafe for pedestrians due to its sharp edges and “boxy” design.

Agencies in the EU have said the vehicle’s “blade-like” protrusions are a violation of rules that ban sharp exterior edges that could cause severe injuries.

In Asia, Tesla will likely have to develop a smaller, more compact version of the vehicle as it does not align with local standards for urban environments. However, Tesla filed for energy consumption approval for the Cybertruck in December 2024, but there has been no real update on the status of this particular inquiry.

Overall, these issues highlight a real bottleneck in futuristic vehicle designs and the out-of-date regulations that inhibit the vehicle from becoming more widely available. Of course, Tesla has teased some other designs, including a more traditional pickup or even a compact Cybertruck build, but the company is not one to shy away from its commitments.

Nevertheless, the Cybertruck will appear in the Middle East for the first time in 2026.

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Tesla teases new AI5 chip that will revolutionize self-driving

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Credit: Tesla

Elon Musk revealed new information on Tesla’s AI5, previously known as Hardware 5, chip, for self-driving, which will be manufactured by both Samsung and TSMC.

The AI5 chip is Tesla’s next-generation hardware chip for its self-driving program, Optimus humanoid robots, and other AI-driven features in both vehicles and other applications. It will be the successor to the current AI4, previously known as Hardware 4, which is currently utilized in Tesla’s newest vehicles.

Elon Musk reveals Tesla’s HW5 release date, and that it won’t be called HW5

AI5 is specially optimized for Tesla use, as it will work alongside the company’s Neural Networks to focus on real-time inference to make safe and logical decisions during operation. It was first teased by Tesla in mid-2024 as Musk called it “an amazing design” and “an immense jump” from the current AI4 chip.

It will be roughly 4o times faster, have 8 times the raw compute, 9 times the memory capacity, 5 times the memory bandwidth, and 3 times the efficiency per watt.

It will be manufactured by both TSMC and Samsung at their Arizona and Texas fab locations, respectively.

Here’s what Musk revealed about the chip yesterday:

Different Versions

Samsung and TSMC will make slightly different versions of the AI5 chip, “simply because they translate designs to physical form differently.” However, Musk said the goal is that its AI software would work identically.

This was a real concern for some who are familiar with chip manufacturing, as Apple’s A9 “Chipgate” saga seemed to be echoing through Tesla.

Back in 2015, it was found that Apple’s A9 chips had different performances based on who manufactured them. TSMC and Samsung were both building the chips, but it was found that Samsung’s chips had shorter battery life than TSMC-fabricated versions.

Apple concluded that the variance was about 2-3 percent. However, Tesla will look to avoid this altogether.

Release and Implementation into Vehicles

Musk said that some samples will be available next year, and “maybe a small number of units” would equip the chip as well. However, high-volume production is only possible in 2027.

This means, based on Tesla’s own timeline for Cybercab production in Q2 2026, early iterations of the vehicle would rely on AI4. Many believe AI4 can be utilized for solved self-driving, but the power of subsequent versions, including AI5 and beyond, will be more capable.

AI6 and Beyond

AI6 will utilize the same fabs as AI5, but there would be a theoretical boost in performance by two times with this version.

AI6 could enter volume production by mid-2028. However, AI7, which Musk only briefly mentioned, “will need different fabs, as it is more adventurous.”

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Tesla makes a splash at China’s Import Expo with Cybercab and Optimus

It appears that Elon Musk’s vision is something that still resonates with people.

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Image: Tesla China
Image: Tesla China

Tesla’s fully autonomous Cybercab made its first appearance in the Asia-Pacific region at the 8th China International Import Expo (CIIE) in Shanghai on November 5, becoming the centerpiece of an event that drew 12 of the world’s leading automakers. 

The new model offers a glimpse into Tesla’s driverless ride-hailing future, and based on the reception of the event’s attendees, it appears that Elon Musk’s vision is something that still resonates with people.

Tesla showcases its driverless vision with the Cybercab

At this year’s expo, themed “Mobility, Infinite Possibilities,” Tesla’s futuristic two-seat Cybercab stood out as a showcase of complete autonomy. According to Tesla staff, the vehicle lacks both a steering wheel and pedals, relying entirely on Tesla’s cameras and an end-to-end neural network designed for full self-driving.

The Cybercab will ultimately serve in the company’s expanding Robotaxi fleet, a cornerstone of Elon Musk’s long-promised autonomous mobility network. During the event, a Tesla employee emphasized that the Cybercab’s model’s compact layout reflects real-world usage, as 92% of trips involve just one or two passengers, as noted in a Sina News report. Trips that require more passengers could easily be handled by the Model 3 and Model Y, which are both capable of seating four, or even five passengers.

Optimus, Tesla’s humanoid robot that is designed for both home and industrial use, was also present at the event. Similar to the Cybercab, Optimus also attracted quite a lot of attention from the event’s attendees.

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Automakers reaffirm commitment to Chinese innovation

Other global automakers, including Volkswagen, Mercedes-Benz, and Honda, also displayed cutting-edge concept cars and intelligent systems, but few captured the same interest as Tesla’s bold showcase of its autonomy and robotics.

Beyond new models, this year’s CIIE highlighted a renewed focus on local innovation and collaboration in China’s rapidly evolving EV landscape. Executives from Volkswagen, Audi, and General Motors reaffirmed that their long-term strategies center on “in China, for China,” strengthening R&D operations and forming tech partnerships with domestic suppliers.

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