Komatsu accelerates equipment electrification with acquisition of American Battery Solutions

Komatsu, a global leading manufacturer of mining equipment, announced on Monday it has agreed to acquire Detroit-headquartered battery manufacturer American Battery Solutions (ABS). The transaction is expected to close on Dec. 1, 2023.

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 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 acquisition of ABS will enable Komatsu 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, where demand for electrification has been increasing.

In the future, Komatsu will aim to expand the use of batteries in construction equipment and to establish a global supply system. The Japanese firm will continue to support ABS’ battery business to further develop the electrification business post-acquisition.

ABS will operate as a standalone 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.

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.

These efforts will help Komatsu achieve its management target of 50% 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.

As part of its growth strategy for the mid-term management plan “DANTOTSU Value – Together, to ‘The Next’ for sustainable growth,” 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.