Komatsu to acquire Michigan-based ABS

Hiroyuki Ogawa, President and CEO, Komatsu Ltd. and Subhash Dhar, Founder, Chairman and CEO, ABS.
Hiroyuki Ogawa, President and CEO, Komatsu Ltd. and Subhash Dhar, Founder, Chairman and CEO, ABS.

Komatsu has agreed to acquire American Battery Solutions (ABS), a battery manufacturer headquartered in Detroit, Michigan.

Komatsu will acquire the company through its subsidiary Komatsu America Corp., and the deal is expected to close on December 1.

ABS develops and manufactures a wide 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 based on customer needs.

ABS’ technology, combined with the advanced product development, enables the company to develop and manufacture battery packs designed to deliver performance, safety and long product life.

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 and the realization of a decarbonized society.

The first equipment produced with ABS’ batteries will be used to power mining equipment in North and South America.

In the future, Komatsu 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 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.

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These efforts will help Komatsu achieve its management target of a 50 per cent reduction of carbon dioxide 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.

Komatsu is working to develop and launch electric equipment to help achieve carbon neutrality, creating new value for customers with the development of new equipment, processes and technologies that will help operations step forward to the next stage for the workplace of the future and provide a more sustainable environment for the next generation.