An all-electric version of the Fortwo, the Smart Fortwo Electric Vehicle (previously known as Smart ED), began development in 2006. Field testing began in London with 100 units in 2007, and the second generation, with a total of 2,000 units produced, was introduced in 2009 and available in 18 markets around the world for leasing or through the Car2Go carsharing service in San Diego and Amsterdam. Production of the second-generation Smart Fortwo electric drive began in November 2009, in Hambach, France. The Smart EDs have a lithium-ion battery provided by Tesla Motors with capacity of 14 kilowatt-hours (50 MJ). The range of a fully charged battery is up to 135 kilometres (84 miles) under the New European Driving Cycle (NEDC). The U.S. Environmental Protection Agency's official all-electric range is 63 miles (101 km) and rated the Smart ED with a combined fuel economy of 87 miles per gallon gasoline equivalent (mpg-e) (2.7 L gasoline equivalent/100 km; 104 mpg-imp gasoline equivalent).
The third-generation Smart electric drive launched in the U.S. and Europe in 2013 and Daimler AG plans to mass-produce the electric car with availability in 30 markets worldwide. The third-generation Smart electric drive was unveiled at the September 2011 Frankfurt Motor Show. Key differences with the second-generation model include a more powerful electric motor, which improves acceleration and top speed, a new lithium-ion battery pack that will allow to increase the range to 140 kilometres (87 mi), and an option for quick-charge will be available.
The fourth-generation Smart fortwo electric drive was shown on 29 September 2016 at the 2016 Paris Motor Show. Based on the redesigned 453 chassis, the new model will launch as a 2017 model. Smart claims the new model will feature a 17.6-kilowatt-hour lithium-ion battery pack with 80 horsepower and 118 pound-feet of torque. Estimated range will be 99 miles on the European testing cycle.