Hiroyuki Ogawa, president and CEO, Komatsu (left) and Subhash Dhar, founder, chairman and CEO, ABS
Komatsu, through its wholly-owned subsidiary in the U.S., Komatsu America Corp., Chicago, plans to acquire American Battery Solutions (ABS), a battery manufacturer headquartered in Detroit. Komatsu said it plans to close the acquisition on Dec. 1, 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, the company said.
ABS develops and manufactures a 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 company said.
Komatsu said the acquisition of ABS will enable it 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. Komatsu said that in the future, it 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, the companies said.
Through the acquisition, Komatsu will accelerate the development of battery-powered electric vehicles by utilizing ABS’ battery-related technology, along with other initiatives Komatsu is pursuing with its partners, to further contribute to the electrification of construction and mining equipment. Komatsu said these efforts will help it achieve its management target of 50 percent reduction of CO2 emissions from the use of its products by 2030 (compared to 2010 levels) as well as the company’s challenge target of achieving its carbon neutrality by 2050.