Komatsu, through its wholly-owned subsidiary in the US, Komatsu America Corporation, has agreed to acquire American Battery Solutions (ABS), a battery manufacturer headquartered in Detroit, Michigan.
ABS develops and manufactures various heavy-duty and industrial battery packs, using lithium-ion batteries for commercial vehicles, transit buses and on- and off-road vehicles.
The company provides standard and custom battery systems optimised for 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 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 solution featuring ABS batteries will power mining equipment in North and South America, where demand for electrification has increased. 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’s battery business to develop the electrification business further after the acquisition.
ABS will operate as a stand-alone business entity within Komatsu and continue its growth plans by executing its current and prospective customer programmes 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.
Komatsu has positioned FY2023 as the first year to introduce electric construction equipment to the market, and the acquisition of ABS will become the milestone of accelerating electrification activities.
Through the acquisition, Komatsu will accelerate the development of battery-powered electric vehicles by utilising ABS’s 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 realisations of a decarbonised society. These efforts will help Komatsu achieve its management target of a 50% reduction of CO2 emissions from using its products by 2030 (compared to 2010 levels) and its challenge target of achieving 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 establish safe, highly productive, smart, and clean workplaces of the future together with its customers and to develop and launch electric equipment to achieve carbon neutrality. Through this DANTOTSU Value (customer value creation that generates a positive cycle of improvement of earnings and ESG resolutions), Komatsu will create new values for stepping forward to the next stage of future workplaces and passing on the sustainable future to the next generation.
