Conti's lithium-ion cell to power Mercedes hybrid

FRANKFURT (Reuters) - Daimler's luxury brand, Mercedes-Benz, will launch an S-Class hybrid next year equipped with a lithium-ion battery supplied by Continental in what Daimler said on Friday was a crucial technological breakthrough.

"The Stuttgart-based automaker is the world's first manufacturer to have succeeded in adapting lithium-ion technology to the demanding requirements of automotive applications," it said in a statement.

Daimler said the main advantages of the newly developed lithium-ion battery were its very compact dimensions and far superior performance relative to conventional nickel-metal hybrid batteries such as those powering the Toyota Prius.

Conti also supplies an inverter to control the flow of energy between the electric motor and the hybrid battery as well as a voltage converter that links the hybrid battery to the car's standard electric system, eliminating the need for a conventional generator.

"This marks an important breakthrough for Continental as supplier of battery systems. In the next few years we will be launching production of further lithium-ion energy storage devices for mild and full-hybrid and electric-powered vehicles," its executive Karl-Thomas Neumann said in a separate statement.

The S 400 BlueHYBRID, powered by a 299 horsepower engine that enables it to sprint from 0 to 100 km per hour in 7.3 seconds. It would consume on average 7.9 liters of gasoline per 100 km and emit 190 grams of carbon dioxide per kilometer, compared with 10.3 liters of gasoline and 247 grams of CO2 in a comparable conventional S-Class.

Daimler said this would make it "the world's most economical luxury sedan -- unrivalled by any gasoline, diesel, or hybrid drive system offered by any competitor."

The power-to-weight ratio of the battery is 1,900 watts per liter. It has a high ampere-hour efficiency, long service life, and is reliable even at very low temperatures, the company said, adding its safety is the equal of that provided by today's auto batteries.

A spokesman for the company said the vehicle, which has not yet been priced, could possibly hit the market in the middle of next year.

Mercedes will launch a diesel hybrid using the same technology in 2010 that consumes on average 5.4 liters of fuel and emits 142 grams of CO2 per kilometer.

"Even more potential is offered by the combination of clean BlueTec diesel technology with a hybrid module, a duo that is featured in the S 300 BlueTec HYBRID, for example," it said.

(Reporting by Christiaan Hetzner; Editing by Quentin Bryar/Will Waterman)