Komatsu, through its wholly owned subsidiary in the US, Komatsu America Corp., has agreed to acquire American Battery Solutions, Inc. (ABS), a battery systems manufacturer headquartered in Detroit, Michigan. Komatsu is planning to close the acquisition on 1 December 2023, on the condition that all necessary procedures for the closing are completed. The immediate impact on Komatsu’s consolidated business results is estimated to be minimal.
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 optimized to each customer’s needs.
ABS’ technology, combined with the advanced product development knowledge and expertise of its people, enables the company to develop and manufacture battery packs designed to deliver superior performance and product life, and to enhance safety.
The acquisition of ABS will enable Komatsu to develop and produce 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 will aim to expand the use of batteries in construction equipment and to establish a global supply system. Komatsu will continue to support ABS’ battery business to further develop the electrification business post-acquisition.
ABS will operate as a stand-alone business entity within Komatsu and will continue its growth plans by executing on its current and prospective customer programs in the commercial vehicle segments. The mining and construction opportunities provided through Komatsu 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.