Daimler AG Have Partnered Up With Tesla Motors For Battery Packs

Daimler have announced that they have acquired an equity stake of 10 percent in Tesla Motors. The two companies sealed a deal that will allow Tesla’s lithium-ion batteries and charging electronics to find their way into the first 1,000 electric Smart cars.

The partnership will not only benefit the Smart car, but also allow the companies to work together on battery systems, electric drive systems and other individual vehicle projects.

This deal says that Prof. Herbert Kohler, Vice President E-Drive and Future Mobility at Daimler AG, will take a seat on Tesla’s board of directors.

“Our strategic partnership is an important step to accelerate the commercialization of electric drives globally,” said Dr. Thomas Weber, Member of the Board of Daimler AG, responsible for Group Research and Mercedes-Benz Cars Development.

Tesla’s Elon Musk, the CEO, said that the lithium ion battery given to Daimler will be designed for automotive specifications, and it will be the same unit found in the Model S sedan which will be released in 2011.

“We are looking forward to a strategic cooperation in a number of areas including leveraging Daimler’s engineering, production and supply chain expertise. This will accelerate bringing our Tesla Model S to production and ensure that it is a superlative vehicle on all levels,” said Musk.