American Battery Solutions announces agreement to be acquired by Komatsu
21 November 2023
American Battery Solutions a leader in the design, development and manufacturing of advanced lithium-ion batteries, is excited to announce plans for its acquisition by Komatsu, a leading manufacturer of construction, mining, forestry and industrial heavy equipment. The financial terms of the acquisition were not disclosed. Komatsu is planning to close the acquisition once all necessary procedures for the closing are completed.
Subhash Dhar, Founder and CEO of ABS, said, "We are excited to join the Komatsu family with its global presence. This partnership will position ABS as a leading partner for electrification of industrial equipment and commercial vehicles globally. We are thankful for the support of our initial investors, KCK Group, and are pleased to enable a successful exit after only 4 ½ years. Komatsu's acquisition of ABS is testament to the intellectual and manufacturing assets ABS has developed in the span of four years."
This announcement comes on the heels of launching a new transit bus battery pack for New Flyer Industries. ABS has also secured long-term supply agreements with leaders in key market segments, including the largest last mile delivery vehicle fleet and the largest RV manufacturer. The acquisition agreement signifies another major milestone for ABS and demonstrates the progress and strong positioning that ABS has in the advanced battery market.
ABS will continue to support its current customer base and expand its activities into off- highway, commercial vehicle and industrial electrification efforts, and to position the company to capitalize on the rapidly expanding battery systems market globally.
"After more than a year of evaluating potential battery partners, ABS stood out because of the depth of the team and their strong technical skill base, breadth of business and battery systems know-how, and battery manufacturing expertise for heavy duty markets," said Taisuke Kusaba, CTO and President, Development Division, Komatsu Ltd.
The construction, mining, forestry and industrial heavy equipment markets are experiencing rapid and massive growth in electrification driven by CO2 reduction efforts, regulatory demands, ESG and operational improvement needs. Together, ABS and Komatsu are committed to developing advanced energy storage systems that are optimized to power the next generation of Komatsu's electrified equipment.
While the acquisition will bring new markets to ABS products, ABS will continue to operate as an independent entity, retaining the company's existing management team; Komatsu is committed to supporting ABS' existing and new customers. ABS will continue to develop both custom and off-the-shelf solutions for on- and off-road mobility applications through the company's Proliance and Alliance brands of products.
ABS has a team of nearly 200 employees with headquarters and engineering development in Lake Orion, Michigan, and manufacturing in Springboro, Ohio.