Yes, but even best combustion engines have at very best 50% efficiency using direct transformation of thermal energy through gas expansion into mechanical energ

Yes, but even best combustion engines have at very best 50% efficiency using direct transformation of thermal energy through gas expansion into mechanical energy. This involves numerous technologies, which better mix fuel and air, inject fuel directly, adjust timing of injection and exhaust following the RPMs, etc. Cars don't generate steam or use any other indirect method of transformation of thermal energy into mechanical energy, due to losses and impracticality (otherwise we would see other types of combustion engines). Burning of powder iron would not work with normal ICEs since powders are not liquids, they are abrasive and burn residuals are not gaseous (rust dust, which is even more abrasive). At very least this is non trivial engineering challenge. So 5-10 times lower specific energy of lithium batteries wins because of simplicity (and lower weight) of whole power-train (inverters, engines) and their high overall efficiency (90-95%). But indeed, on big ships (e.g. tankers), which can have a steam turbines, iron might be a feasible fuel (especially if using onboard solar power while cruising it is possible to recover part of it as a fuel again).