Hiroyuki Ogawa, president and CEO, Komatsu Ltd. (left) and Subhash Dhar, founder, Chairman and CEO, ABS. (Photo courtesy of Komatsu)
Komatsu, through its wholly owned subsidiary in the U.S., Komatsu America Corp., has agreed to acquire American Battery Solutions, Inc. (ABS), a battery manufacturer headquartered in Detroit, Mich.
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.
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 says it will aim to expand the use of batteries in construction equipment and to establish a global supply system while continuing to support ABS’ battery business to further develop the electrification business post-acquisition.
Komatsu has a management target of a 50 per cent reduction of CO2 emissions from the use of its products by 2030 (compared to 2010 levels) and a company challenge target of achieving carbon neutrality by 2050.
ABS will operate as a stand-alone 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 acquisition is expected to close on December 1 of this year.