InformationWeek has learned that Mercedes-Benz may be forced to cancel or delay the launch of the ML450 hybrid. Cobasys, a joint venture between Chevron and Energy Conversion Devices, was contracted to supply Mercedes with nickel-metal hydride (NiMH) batteries, a $6 million contract, might be closing shop due to the lack of funding from its partners (Chevron & ECD). The battery supplier lost almost $76 million in 2007, and may lose a similar amount this year.

If Cobasys is unable to supply the batteries, Mercedes will be forced to delay/cancel the launch of the ML4 50 Hybrid, until it finds a suitable supplier, or they might even force Cobasys to manufacture the batteries via litigation.