Daimler Set to Announce Electric Car Deal

Daimler plans to announce a "strategic cooperation" for its electric car business tomorrow morning. Could it involved expanding its relationship with Tesla Motors?

Back in January, Daimler said it would be buying lithium-ion battery packs and chargers from Tesla for its Smart cars. The deal involves outfitting 1,000 all-electric Smart cars only, though Tesla CEO Elon Musk said the partnership is likely to grow to involve meatier projects.

San Carlos, Calif.-based is primarily an electric carmaker selling its first-ever model, a $109,000 Roadster. It plans to launch its second model, the $57,400 Model S, in late 2011. The company unveiled a prototype Model S in March this year.  

After developing its own powertrain, which includes the motor, power electronics and battery pack, Tesla is keen on selling powertrain components as well. Aside from supplying powertrains for its own cars, Tesla's only other announced customer for its powertrain business is Daimler.

Daimler already has partnered with Evonik for battery production, but it's looking for another partner in developing batteries for its passenger cars, buses and commercial vehicles. Last December, Daimler announced that it had bought a 49.9 percent stake in Evonik's subsidiary, Li-Tec, whose battery cells would appear in Mercedes-Benz first. At the time, Daimler and Evonik said they were looking for another investor in Li-Tec and one that would come with experience in developing electronic systems.

Daimler also formed a joint venture with Evonik to produce battery systems for passenger cars, buses and other vehicles and said it would hold a 90 percent stake in the joint venture. 

A broader deal with Daimler would be great news for Tesla, of course, given that the startup carmaker expects to get federal loans for building a factory in California and would need to make good money to pay back loans (and preferably make a profit as well).