In the race to develop more electric construction equipment and related charging solutions, Komatsu has agreed to acquire American Battery Solutions.
Closing on the purchase of the Detroit-based company is planned for December 1.
ABS develops and manufactures a wide variety of heavy-duty and industrial battery packs, using lithium-ion batteries for commercial vehicles, transit buses, and on- and off-road vehicles.
The acquisition gives Komatsu the ability to continue developing and producing its own battery-operated construction and mining equipment through the integration of ABS technology. The first equipment produced with ABS batteries will be mining equipment, with plans to expand into construction equipment.
Hiroyuki Ogawa, President and CEO, Komatsu Ltd. (left) and Subhash Dhar, Founder, Chairman and CEO, ABS (right).Komatsu
Before the acquisition of ABS, Komatsu had been working with battery-solution manufacturer Proterra since an agreement was announced in January 2021.
Charging solutions under development by the two companies were unveiled at ConExpo 2023. These included the Komatsu Generation 2 charger, a small mobile charging option, and a larger "off-grid" power bank. Each was at a different stage of development in terms of being near distribution.
However, opportunities between Proterra and Komatsu may have been altered when Proterra filed for Chapter 11 bankruptcy in early August.
Recently, the Volvo Group was announced as the winning bidder for Proterra's battery business unit. It is unclear how this new ownership will impact development projects or agreements Proterra had with Komatsu or other OEMs. Representatives from Komatsu were not able to confirm if the company was pursuing an acquisition of ABS before Proterra's financial situation dissolved.
However, going forward, Komatsu’s development of electric construction and mining equipment will utilize ABS’ battery technology, along with other initiatives the company is pursuing with other partner companies.
Komatsu intends to further expand the electrification of its fleet of construction and mining equipment to reduce its C02 emissions by 50% by 2030 compared to 2010 levels and achieve company carbon neutrality by 2050.
The company is working on several solutions to achieve its goal, including the continued advancement of its hybrid technology, hydrogen fuel options, and the development of more battery-powered electric construction equipment.
Under its new ownership, ABS will operate as a stand-alone business entity within Komatsu and continue any anticipated growth plans while directly supporting the development of Komatsu's electrification of construction and mining machines.
Beyond these recent investments, other leading OEMs have also snapped up partners to accelerate their move toward electrification.
Caterpillar in January announced an investment in Lithos Energy, a San Rafael, California-based designer and manufacturer of shock-resistant battery solutions for off-road and marine applications.
In August, John Deere announced plans to produce Kreisel battery packs and chargers in Kernersville, North Carolina, following the construction of a new $69.6 million facility. Deere acquired Kreisel Electric, an Austrian-based developer of immersion-cooled, high-density battery technology, in February 2022.
Yanmar acquired a majority share of ELEO Technologies, a Netherlands-based developer of advanced modular battery technology, in April 2022.
ABS’ low-voltage Alliance Intelligent Battery Series battery pack (left) and high-voltage Proliance Intelligent Battery Series battery pack (right).Komatsu
