Daimler AG (DAI) and German industrial conglomerate Evonik Industries AG said Monday they will team up to jointly develop and produce lithium-ion batteries for electric cars, confirming several media reports published over the weekend.

To this end, Daimler said it would acquire 49.9% of Li-Tec Vermoegensverwaltung GmbH as of Dec. 15. Evonik holds the remaining 50.1%.

Furthermore, the two companies will set up a joint venture to develop and produce batteries and battery systems for automobiles, in which Daimler will hold a stake of 90% and Evonik 10%.

Daimler said its investment in these battery projects would be in the low three-digit million euro range.

Company Web site: www.daimler.com

-By Dorothee Tschampa, Dow Jones Newswires; +49 69 29 725 114; dorothee.tschampa@dowjones.com

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