Acquisition will allow Komatsu to develop and produce their own battery-operated equipment
KOMATSU, through their wholly owned subsidiary in the US, Komatsu America Corp., have agreed to acquire American Battery Solutions Inc. (ABS), a battery manufacturer headquartered in Detroit, Michigan. Komatsu plan to close the acquisition on 1 December 2023, subject to all necessary procedures for the closing being completed.
ABS develop and manufacture 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 company provides both standard and custom battery systems optimized to each customer’s needs.
The acquisition of ABS will allow Komatsu to develop and produce their own battery-operated construction and mining equipment, through the integration of ABS’ battery technology with Komatsu’s knowledge and network.
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, but in the future Komatsu will aim to expand the use of batteries in construction equipment and to establish a global supply system.
ABS will operate as a stand-alone business entity within Komatsu and will continue their growth plans by executing on their current and prospective customer programmes in the commercial vehicle segments. The mining and construction opportunities provided through Komatsu will allow ABS to position themselves as one of the world’s leading providers of battery systems in both on-highway and off-highway markets.
Through the acquisition, Komatsu will accelerate the development of battery-powered electric vehicles by utilizing ABS’ battery-related technology, along with other initiatives Komatsu is pursuing with their partners, to further contribute to the electrification of construction and mining equipment and the realization of a decarbonized society.