Komatsu to acquire U.S. battery manufacturer

Komatsu has announced it is acquiring Detroit-based American Battery Solutions, Inc, with the takeover expected to be completed by December 1, 2023, subject to customary closing conditions.

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 company provides both standard and custom battery systems optimised to each customer’s needs.

Komatsu said the acquisition of ABS will enable the company to develop its 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. In the future, Komatsu hopes to expand the use of ABS’ batteries in its range of construction equipment and to establish a global supply system.

ABS will operate as a stand-alone business entity within Komatsu and will continue its endeavours in the commercial vehicle segments.

Komatsu said the new partnership 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.

Through the acquisition, Komatsu will accelerate the development of battery-powered electric vehicles by utilising ABS’ battery-related technology in realisation of its decarbonisation goals. Komatsu hopes to achieve its goals of reducing CO2 emissions by 50 per cent from the use of its products by 2030 (compared to 2010 levels) as well as achieve carbon neutrality by 2050.

The company has released several battery-powered excavators into the local market in 2023, and said the acquisition of ABS will accelerate its electrification goals.