The Associated Press reports that Daimler AG is planning to roll out a hybrid version of its Mercedes-Benz flagship S-Class luxury sedan that uses lithium-ion batteries, one of the first automotive hybrid adaptations of a technology first seen in consumer electronics over a decade ago. The new batteries will appear in the automaker's top-tier S 400 BlueHYBRID beginning next year.

"What we have here is a groundbreaking key technology that is going to be a decisive factor for the future success of the automotive industry," Daimler Board member Thomas Weber said in a statement. That's a little overblown, but battery technology has lagged far behind powertrain development over the past 20 years, so this couldn't come a day too soon.

The report said that this follows Toyota's announcement back in December that they plan to start mass-producing lithium-ion batteries as well. All current hybrids in production, including the Prius, use inferior nickel metal-hydride batteries.