Mining and construction equipment major Komatsu expects to close the acquisition of four-year-old US-based lithium-ion battery maker American Battery Solutions (ABS) by the start of next month.
ABS, headquartered in Detroit, Michigan, will have a “minimal” immediate impact on Komatsu’s consolidated business results but is expected to enable the machinery giant 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 with ABS’ batteries produced will be used to power mining equipment in North and South America, where demand for electrification has been increasing,” Komatsu said this week.
“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.”
Komatsu, which didn’t disclose its acquisition cost, said ABS would operate as a stand-alone business entity and would maintain current and prospective commercial vehicle customer programs.
“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,” it said.