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The rumors were true. At the Society of Automotive Analysts outlook conference this morning, Tesla CEO Elon Musk announced that his company will supply lithium ion battery packs and charging systems to Daimler AG. The components will be used to power the second-generation smart ed. Daimler will build 1,000 of the electric smarts for field testing beginning this year. Some of those will be coming to the US in 2010. Tesla and Daimler are collaborating on development of the batteries. Musk told ABG that the program began in November 2007 and the first prototype was ready in 40 days.