California based car manufacture Telsa motors expanded there partnership with the second largest car manufacture, Daimler-Benz today. Daimler has acquired a 10% stake in the company.

The partnership will help equip Mercedes-Benz vehicles with Tesla’s technology of lithium-ion batteries.

Daimler has already been experimenting with their batteries in a fleet of 100 smart cars, which are moving into limited production.

With this agreement, Mercedes plans to come out with there first battery powered vehicle by 2010, and to offer all other models by 2012.

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