Swedish automaker Volvo is set to acquire the battery business of Proterra and Proterra Operating Company for $210 million, aiming to enhance and expedite its battery-electric offerings.
The move comes as Proterra and its operating arm navigate a voluntary Chapter 11 bankruptcy process in the United States, with Volvo emerging as the buyer following an auction process, as disclosed on Friday.
The assets included in the acquisition encompass a battery module and pack development center located in California, along with an assembly facility situated in South Carolina.
The completion of the deal is anticipated in early 2024, contingent upon approvals from the bankruptcy court, merger clearance, and fulfillment of other specified conditions. Volvo clarified that the transaction is not expected to have a significant impact on its financial performance.
