Volvo Group buys Proterra

The Volvo Group has announced the acquisition of Proterra's battery business for a purchase price of 210 million dollars. The deal comes just a few months after the US electric bus and battery manufacturer filed for Chapter 11 bankruptcy protection in the US.

Image: Proterra

Both parties are hoping to complete the acquisition in early 2024. The transaction is still subject to several approvals, including that of the insolvency court. If it gets the green light, Volvo will take over the development centre for battery modules and packs in California and Proterra’s battery assembly plant in South Carolina, which opened in January 2023. The agreed purchase price is 210 million dollars. It remains to be seen how Volvo will integrate the Proterra business into its group structure.

Proterra filed for Chapter 11 bankruptcy protection in the US in August, which is effectively a self-administered bankruptcy proceeding for restructuring. The company’s announcement at the time spoke of a “strategic initiative to strengthen [its] financial position and sharpen [its] technology focus.”

“While our best-in-class EV and battery technologies have set an industry standard, we have faced various market and macroeconomic headwinds, that have impacted our ability to efficiently scale all of our opportunities simultaneously,” said Proterra CEO Gareth Joyce at the time. Proterra had already reported hardware bottlenecks in the summer of 2022 and named the availability of parts as one of the biggest challenges.

Chapter 11 insolvency proceedings in the USA are filed to allow a company to reorganise and protect it from legal actions by debtors until the reorganisation is complete. If a company is insolvent and sees no basis for successful continued operation, it terminates those operations according to the rules of Chapter 7. In the wake of the 2009 financial crisis, General Motors also filed for Chapter 11 bankruptcy proceedings.

Proterra went public in 2021 via SPAC merger to facilitate access to investor funds. At the time, the company was valued at 1.6 billion dollars, including debt. At the last close of trading before the Chapter 11 bankruptcy announcement, Proterra still had a market value of 362 million dollars.

Proterra just ramped up production at a new battery assembly plant in Greer, South Carolina, this January. The company operates another plant in California. In both cases, cylindrical cells from LG Energy Solution are processed into battery packs used in Proterra’s electric buses and by third-party customers. Since business operations will continue now, the customer projects mentioned remain unaffected. But if no investor is found, they could be in the future. Battery systems from Proterra are purchased by companies such as the Shyft GroupNikolaVicinity MotorAnadolu Isuzu, and Volta Trucks.


about „Volvo Group buys Proterra“
10.11.2023 um 20:07
Probably worth mentioning that Volvo Group is no longer associated with Volvo Cars which was sold off to Ford in 1999. Who then sold it to Geely in 2010. Most readers will assume you are referring to the Chinese owned car maker. While the Swedish heavy truck & bus company, Volvo Group, is who is being discussed here.
Cody Uhlmansiek
13.11.2023 um 02:36
I think Volvo is more American than Swedish! White and Mack trucks, Volvo Marine engine and now Proterra. Have to see how many employees are in the US...
13.11.2023 um 07:05
Thanks Rein. I was assuming Geely is buying Proterra.
14.11.2023 um 12:19
Volvo are one of the big three heavy truck makers in Europe, along with Daimler and Traton (MAN trucks). They are also in the lead world wide in making electric heavy trucks. This purchase should strengthen their position in Electric buses.
16.11.2023 um 17:57
Volvo nice

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