In a move designed to bolster its presence in the battery- and electric-powered heavy equipment market, Illinois-based Komatsu America Corp. has agreed to acquire American Battery Solutions Inc. (ABS), a lithium-ion battery manufacturer based in Detroit.
The wholly owned subsidiary of South Korea-based Komatsu Ltd. says it is planning to close the acquisition this Dec. 1, “on the condition that all necessary procedures for the closing are completed.”
Komatsu describes ABS as a developer and manufacturer of heavy-duty and industrial battery packs, using lithium-ion batteries (LIBs) for commercial vehicles, transit buses and on- and off-road vehicles. (ABS is not affiliated with American Battery Technology Co., a Nevada-based firm that operates a LIBs recycling facility in that state.)
ABS, according to Komatsu, provides “standard and custom battery systems optimized to each customer’s needs.”
“We are excited to join the Komatsu family with its global presence,” says Subhash Dhar founder and CEO of ABS.. “This partnership will position ABS as a leading partner for electrification of industrial equipment and commercial vehicles globally. Komatsu’s acquisition of ABS is testament to the intellectual and manufacturing assets ABS has developed in the span of four years.”
Comments Taisuke Kusaba, chief technology officer and president of Komatsu’s Development Division, “After more than a year of evaluating potential battery partners, ABS stood out because of the depth of the team and their strong technical skill base, breadth of business and battery systems know-how, and battery manufacturing expertise for heavy duty markets.”
The acquisition is intended to allow Komatsu to “accelerate the development of battery-powered electric vehicles by utilizing ABS’ battery-related technology, along with other initiatives Komatsu is pursuing with its partners, to further contribute to the electrification of construction and mining equipment and the realization of a decarbonized society,” states the firm.
The first equipment produced with ABS’ batteries will be used to power mining equipment in North and South America, where demand for electrification has been increasing, adds the global equipment maker.
“In the future, Komatsu will aim to expand the use of batteries in construction equipment and to establish a global supply system,” adds the firm.
Procedurally, ABS will operate as a stand-alone business entity within Komatsu and will continue its current and prospective customer programs in the commercial vehicle segments, according to Komatsu. Komatsu says it “will continue to support ABS’ battery business to further develop the electrification business post-acquisition.”
Adds Komatsu, “The mining and construction opportunities provided through Komatsu will enable ABS to position itself as one of the world’s leading providers of battery systems in both on-highway and off-highway markets.”
The equipment maker also says its management plan known as “Dantotsu Value – Together, to ‘The Next’ for sustainable growth” is focused on developing and launching electric equipment “to help achieve carbon neutrality, [and] provide a more sustainable environment for the next generation.”
Read the full article here