Japanese manufacturing giant Komatsu has announced its agreement to acquire American Battery Solutions (ABS), a Detroit-based battery manufacturer specializing in heavy-duty vehicles. The strategic move aims to facilitate Komatsu's foray into the development and production of electric construction and mining machines, leveraging ABS's battery technology.
Anticipated to conclude by December 1, 2023, the acquisition will be executed through Komatsu's wholly-owned US subsidiary, Komatsu America Corp. The financial terms of the deal remain undisclosed.
Upon completion, ABS will function as an independent business unit within Komatsu, retaining autonomy for its growth initiatives in the commercial vehicle segments. Komatsu envisions ABS expanding its presence in the battery systems market for both on-highway and off-highway applications, particularly in mining and construction.
Komatsu, with ambitions to cut CO2 emissions from its products by 50% by 2030 compared to 2010, sees this acquisition as a strategic move toward achieving its sustainability goals. The company plans to integrate ABS's battery technology initially into mining equipment destined for North and South America.
In 2021, Komatsu initiated the Greenhouse Gas Alliance, a collaborative effort with industry leaders such as Rio Tinto, BHP, Codelco, and Boliden, to drive decarbonization in the mining sector. Additionally, Komatsu has ongoing partnerships, including one with Cummins for the development of hydrogen fuel cell mining vehicles.
American Battery Solutions, established in 2019, currently employs nearly 200 individuals, with its headquarters and engineering located in Lake Orion, Michigan, and manufacturing facilities in Springboro, Ohio. The company, which initially relied on testing equipment and machinery from Bosch, is poised to contribute to Komatsu's advancements in the electric heavy-duty vehicle sector.