Saccharomyces cerevisiae cells lacking the yeast frataxin homologue (⌬yfh1) accumulate iron in the mitochondria in the form of nanoparticles of ferric phosphate. The phosphate content of ⌬yfh1 mitochondria was higher than that of wild-type mitochondria, but the proportion of mitochondrial phosphate that was soluble was much lower in ⌬yfh1 cells. The rates of phosphate and iron uptake in vitro by isolated mitochondria were higher for ⌬yfh1 than wild-type mitochondria, and a significant proportion of the phosphate and iron rapidly became insoluble in the mitochondrial matrix, suggesting co-precipitation of these species after oxidation of iron by oxygen. Increasing the amount of phosphate in the medium decreased the amount of iron accumulated by ⌬yfh1 cells and improved their growth in an iron-dependent manner, and this effect was mostly transcriptional. Overexpressing the major mitochondrial phosphate carrier, MIR1, slightly increased the concentration of soluble mitochondrial phosphate and significantly improved various mitochondrial functions (cytochromes, [Fe-S] clusters, and respiration) in ⌬yfh1 cells. We conclude that in ⌬yfh1 cells, soluble phosphate is limiting, due to its coprecipitation with iron.