Back in August of 2021, we compared NCA (lithium nickel cobalt aluminum oxide) batteries with LFP (lithium iron phosphate) batteries - "Tesla's LFP (iron) batteries compared. Which one should you buy?". NCA batteries had been the standard for all Tesla models in the USA, but Tesla’s plans to switch to LFP in Model 3s and Model Ys prompted that article. Tesla even offered more rapid delivery to customers waiting for the cars they had on order if they decided to get their car with LFP batteries.
A nickel mine in Indonesia
There are trade-offs between these two battery types in terms of weight, range, consequences of carrying a full charge, regenerative braking, and cold weather behavior which are all discussed in the column mentioned above. These are all valid considerations, but working from the assumption that a prime motivation of most people buying an electric car is to promote a healthy environment and a healthier planet (by cutting CO2 emissions), it should also be mentioned that these two battery chemistries have vastly different implications for the environment. Crucially, NCA batteries are built with a lot of nickel (about 18 kg in a Tesla) whereas LFP batteries have none. But high demand for nickel for Teslas (and many other electric vehicle models) is accelerating strip-mining in Indonesia and the Philippines. Mining is one thing, but strip mining is more problematic.
Strip mining on tropical islands in Southeast Asia is especially harmful because these are centers of biodiversity with large numbers of unique species of plants and animals, many of which are endangered - some critically so. Unlike forest clearing, where the land retains some value for agricultural production, strip mining obliterates what is there and it will likely be decades, if not centuries, before such areas are productive again. When not rainforests, this strip mining is destroying agricultural land. Plus, Southeast Asia has high rainfall, so once the land is laid bare, erosion carries large amounts of sediment onto nearby coral reefs.
Details matter, however, and in this case it should be pointed out that nickel is mined from two sources - laterite and sulfide. Laterite deposits (as in Indonesia and the Philippines) are formed by the weathering of ultramafic bedrock in areas of high seasonal rainfall, along ridges and mountain shoulders. Through leaching, nickel accumulates 10-25 m below the surface and the only way to get at it is to clear off the top 10 m and everything living there.
In contrast, sulfide deposits are in the bedrock and nickel is extracted by hard-rock mining, sometimes near the surface, but often far underground. This distinction is important for electric vehicles because sulfide deposits are smelted into the highly pure nickel which is required for batteries. When laterite nickel is smelted, the lower purity nickel primarily goes to other uses, such as stainless steel. However, if laterite nickel is processed by High Pressure Acid Leaching (HPAL), nickel of sufficient purity for batteries is produced, but at present not very much is produced this way. Of the other uses of nickel besides for batteries, some processes also need high purity nickel, but some can use either high or lower purity nickel. Another important point is that there are not likely prospects for increased production of sulfide nickel, whereas there are extensive areas available for mining laterite nickel.
This may all seem convoluted, but what this all means is 1) as consumption of sulfide nickel for batteries grows with the expansion of the electric vehicle market, this will take up more and more of available sulfide supplies; 2) processes which can use either will hence shift to laterite nickel. Thus, while some may point out that electric vehicle batteries, for the most part, do not use laterite nickel and hence are not the cause of the expanding strip-mining occurring in Indonesia and the Philippines (and in a few other places such as Venezuela and Brazil), it is nevertheless true that additional demand for laterite nickel is a consequence of vehicle batteries taking an increasingly large portion of the available sulfide nickel.
Despite much press coverage last year, Tesla's transition to LFP batteries has only made it to the Model 3 Rear Wheel Drive model (in the USA). Other models may get LFP batteries in the future, as they have in Europe. So, buying a Tesla is a great way to contribute to the decarbonization of your personal transportation, but to avoid the harmful impacts of high-nickel battery chemistries, lithium iron phosphate (LFP) is the best, even if you have to be selective as to which model you get.
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In a new video posted to X, Tesla is showing the progress of its first Lithium Iron Phosphate (LFP) cell manufacturing factory in North America. The facility, located in Sparks, Nevada, will be used to produce LFP battery cells for Megapacks and Powerwall.
However, the implications of this new factory extend beyond Tesla Energy. By on-shoring the production of these cost-effective batteries, Tesla is not only securing its energy supply chain but also opening the door to potentially reintroducing LFP-based vehicles in North America.
Nearing completion of our first LFP cell manufacturing factory in North America pic.twitter.com/OLNRWajz4l
The immediate beneficiary of the new Nevada LFP facility is Tesla’s Energy division. LFP chemistry is ideal for stationary storage products like Megapack and Powerwall. It offers a very long life cycle, is extremely thermally stable and safe, and is significantly cheaper to produce than nickel-based batteries, partly because it contains no cobalt.
Until now, Tesla has relied on suppliers like CATL in China for these cells. A dedicated, domestic supply will enable Tesla to dramatically ramp up Megapack production to meet North America’s increasing demand for grid-scale energy. On the other hand, Megafactory Shanghai continues to utilize CATL’s LFP batteries and will support the rest of the world.
Tesla first revealed that they were planning to onshore LFP production in North America at the Q1 2025 Earnings Call, which will help them avoid costs, innovate in new technology, and insulate themselves from geopolitical supply chain risks.
A Potential Return for LFP Vehicles?
Another exciting application for Tesla is what this new factory means for Tesla’s budget-oriented lineup. For years, Tesla has been constrained in its ability to offer LFP-based vehicles in North America. While LFP packs are used in other markets for specific standard-range RWD vehicles, tariffs on important Chinese cells made it difficult to import these cells for use in North America.
With a domestic supply of LFP cells produced in Nevada, this tariff-related barrier will be mostly eliminated, pending the sourcing of lithium from a North American site. This is likely to lead to the reintroduction of LFP-based vehicles to the North American market, possibly in late 2026 or 2027.
An American-made LFP pack could lead to a more affordable base Model 3 or Model Y, or potentially help Tesla cut costs on the next-generation Affordable Model even further. This helps to give customers a lower-cost entry point without sacrificing a lot of range, and with the added benefit of being able to regularly charge to 100%.
Mega Nevada
With Mega Nevada now progressing well, Tesla is in an excellent position to continue iterating on its vertical integration and scaling Megapack and Powerwall—two of Tesla’s fastest-growing businesses—further. There are tons of benefits for consumers in the future as Tesla continues down this path, with more affordable Powerwalls for the home, cheaper electricity prices thanks to grid-forming Megapacks, and cheaper LFP vehicles.
The next major upgrade for Tesla’s in-car experience is pretty much already here - just hiding beneath the surface, awaiting the flick of a switch. According to new details uncovered by Tesla hacker Greentheonly, a fully functional version of the Grok conversational AI assistant is already present in recent firmware builds, just waiting for Tesla to activate it.
The feature, which is currently behind a server-side switch, could be enabled at any time by Tesla for vehicles running update 2025.20 and newer. The findings provide a better picture of what we already learned from Green’s breakdown on Grok last month.
Grok’s Requirements
@greentheonly on X
According to what Green determined from the latest software builds, the foundation for Grok was laid with update 2025.14, with more abilities and functionality added in 2025.20 to flesh it out. He also determined exactly which vehicles will be receiving Grok.
In terms of hardware, any vehicle with a Ryzen-based infotainment computer will receive Grok. This means that vehicles with the older Intel Atom processor will not be supported, at least initially. The underlying Autopilot hardware is not a factor, as Grok’s processing is not done in-vehicle.
Grok will also require premium connectivity or a Wi-Fi connection for the vehicle. At this point, we’re not sure whether Grok in your Tesla will also require you to sign up for SuperGrok, X Premium, or X Premium+, but Tesla is requiring you to sign into your Grok account. It’s just not clear whether the free version of Grok will work, or if you’ll need the premium version.
Grok User Experience
@greentheonly on X
Green also revealed the user interface for Grok for the first time. You’ll find many of the same features from the Grok app, but surprisingly, it looks like it’ll have a dark UI, even if you’re using light mode in your vehicle.
It appears that there will be a Grok app, likely for settings. However, Grok will largely operate in a modal, similar to voice commands, which are displayed near the bottom left corner of the screen.
There’s an on-screen microphone button, as well as drop-down menus for the voice and type of assistant you’d like to use.
Similar to the Grok app currently on mobile devices, you’ll be able to select from a set of voices and then define their personality. The available voices for now are the standard Ara (Upbeat Female), Rex (Calm Male), and Gork (Lazy Male).
There’s also a settings button, which, when expanded, allows you to enable or disable NSFW mode (including swearing and adult topics), as well as a Kids Mode, which will tone Grok down to be suitable for when kids are in the car.
@greentheonly on X
How Grok Will Work (Button / Wake Word)
Users will be able to activate Grok by pressing a button, likely the same one that activates voice commands today. Grok will then remain enabled for the duration of your conversation, allowing you to go back and forth, asking and answering questions. To end your conversation, you’ll press the mic button again.
While it doesn’t appear to use a wake word yet, Green says that some code refers to a wake word, so it’s possible that this could be an option Tesla plans to activate in the future.
Replacing Voice Commands
The most significant implication of Grok’s future integration is in its potential to fully replace the existing and relatively rigid voice command system. Green notes that internally, this feature is part of the car assist module, and that eventually, the plan is for Grok to take over car control functions.
Unlike the current system, which requires specific phrases, a true conversational AI like Grok can understand natural language. This will enable more intuitive requests, completely changing how drivers interact with their car.
Language Support
@Greentheonly/X
Grok will also launch with multi-language support, similar to its current abilities in the Grok app. Green says that it already appears to have support for English and Chinese and one or two other languages.
Release Date
Grok appears ready to go from a vehicle standpoint, but Green wasn’t able to actually test it out. While development appears to be nearly complete in the vehicle, Tesla and xAI may still be working on some server-side changes to better integrate with the vehicle. If they plan for Grok to replace voice commands on day one, then it’ll need to be trained and be able to execute a variety of vehicle commands.
It’s possible Tesla is actively testing Grok or adding server-side changes to replace voice commands. However, it looks like vehicle development is nearly complete and Grok could launch as soon as the next major Tesla update, which is expected to be update 2025.24.
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