Daimler tapped Tesla Motors for the batteries it needs to get the Smart EV program rolling, but it appears the German automaker will use its own batteries in production models.
Tesla founder Elon Musk said Tuesday his company would provide lithium ion battery packs and chargers to Daimler, which plans to begin producing the small electric car by year's end. Musk made it clear the deal is for 1,000 batteries and said, "If the 1,000-vehicle fleet is successful and the economics make sense and the product is compelling, that will expand to tens of thousands of vehicles per year," he said.
If Daimler produces that many Smart electric cars, it won't be using Tesla's batteries.
"Mr. Musk was right about the 1,000 batteries," Daimler spokesman Pitt
Moos told Wired.com in an email received today. "As we will step up volumes, we'll use our own batteries currently under development."
Last month, Daimler announced a joint venture with the German company Evonik to develop lithium-ion batteries, and Matthias Brock, head of communications for Daimler's R&D division, says Tesla's batteries will help the automaker achieve "a higher three-digit volume" of EVs.
"This helps us to bridge the time until the industrialization of lithium-ion batteries within our joint venture with Evonik will be ready," Brock told Green Car Congress. Tesla delivered its first prototype about a year ago, and the final version is still being developed.
Neither company has announced the terms of the deal. Whatever the scope of Tesla's deal with Daimler, it remains significant for Tesla because it provides the company with income and a broader market for its technology. Michael Van der Sande, vice president of global sales and marketing, has said the company is discussing similar deals with other automakers.
We're awaiting comment from Tesla.
Photo: Daimler
See Also:
