Komatsu to take over American Battery Solutions (ABS)
The acquisition is expected to be completed within a week, on 1 December 2023, through Komatsu’s wholly-owned US subsidiary, Komatsu America Corp. The purchase price has not been disclosed.
ABS will operate as an independent business unit of Komatsu. The latter expects ABS to “continue its growth plans” in the commercial vehicle segments. Moreover, the new owners intend to provide “mining and construction opportunities” to enable ABS to become a leading supplier of battery systems in both on-highway and off-highway markets.
In turn, the acquisition will enable Komatsu to develop and produce its own electric construction and mining machines with ABS battery technology. The company wants to utilise the batteries initially in mining equipment for North and South America.
Komatsu targets halving CO2 emissions from using its products by 2030, compared to 2010. The company in 2021 formed the Greenhouse Gas Alliance to drive decarbonisation in the mining sector alongside the founding members Rio Tinto, BHP, Codelco and Boliden. Komatsu is also working with Cummins on hydrogen fuel cell mining vehicles.
ABS has nearly 200 employees, with headquarters and engineering in Lake Orion, Michigan, and manufacturing in Springboro, Ohio. When launching in 2019, the company relied on testing equipment and machinery from Bosch.