American Battery Solutions (ABS), a company specializing in the design, development and manufacturing of advanced lithium-ion batteries, has announced its impending acquisition by Komatsu, a manufacturer of construction, mining, forestry and industrial heavy equipment.
The construction, mining, forestry and industrial heavy equipment markets are experiencing growth in electrification driven by CO2 reduction efforts, regulatory demands, ESG and operational improvement needs. ABS and Komatsu are developing advanced energy storage systems optimized to power the next generation of Komatsu’s electrified equipment.
This announcement follows the recent launch of a new transit bus battery pack for New Flyer Industries. ABS has also secured long-term supply agreements with key market segments, including the largest last mile delivery vehicle fleet and the largest RV manufacturer.
While the acquisition will open new markets for 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 plans to continue supporting its current customer base and expand its activities into off-highway, commercial vehicle and industrial electrification efforts, aiming 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.
ABS, with nearly 200 employees, has its headquarters and engineering development in Lake Orion, Michigan, and manufacturing in Springboro, Ohio.
Subhash Dhar, Founder and CEO of ABS, stated, “We are excited to join the Komatsu family with its global presence. This partnership will position ABS as a 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.”
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