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American Battery Solutions announces agreement to be acquired by Komatsu

Komatsu agrees to acquire leading North American battery manufacturer

LAKE ORION, Mich., Nov. 20, 2023 /PRNewswire/ -- American Battery Solutions (ABS), a leader in the design, development and manufacturing of advanced lithium-ion batteries, is excited to announce plans for its acquisition by Komatsu, a leading manufacturer of construction, mining, forestry and industrial heavy equipment. The financial terms of the acquisition were not disclosed. Komatsu is planning to close the acquisition once all necessary procedures for the closing are completed.

Subhash Dhar, Founder and CEO of ABS, said, "We are excited to join the Komatsu family with its global presence. This partnership will position ABS as a leading partner for electrification of industrial equipment and commercial vehicles globally. We are thankful for the support of our initial investors, KCK Group, and are pleased to enable a successful exit after only 4 ½ years. Komatsu's acquisition of ABS is testament to the intellectual and manufacturing assets ABS has developed in the span of four years."

This announcement comes on the heels of launching a new transit bus battery pack for New Flyer Industries. ABS has also secured long-term supply agreements with leaders in key market segments, including the largest last mile delivery vehicle fleet and the largest RV manufacturer. The acquisition agreement signifies another major milestone for ABS and demonstrates the progress and strong positioning  that ABS has in the advanced battery market.

ABS will continue to support its current customer base and expand its activities into off- highway, commercial vehicle and industrial electrification efforts, and to position the company to capitalize on the rapidly expanding battery systems market globally.

"After more than a year of evaluating potential battery partners, ABS stood out because of the depth of the team and their strong technical skill base, breadth of business and battery systems know-how, and battery manufacturing expertise for heavy duty markets," said Taisuke Kusaba, CTO and President, Development Division, Komatsu Ltd.

The construction, mining, forestry and industrial heavy equipment markets are experiencing rapid and massive growth in electrification driven by CO2 reduction efforts, regulatory demands, ESG and operational improvement needs. Together, ABS and Komatsu are committed to developing advanced energy storage systems that are optimized to power the next generation of Komatsu's electrified equipment.

While the acquisition will bring new markets to ABS products, ABS will continue to operate as an independent entity, retaining the company's existing management team; Komatsu is committed to supporting ABS' existing and new customers. ABS will continue to develop both custom and off-the-shelf solutions for on- and off-road mobility applications through the company's Proliance and Alliance brands of products.

ABS has a team of nearly 200 employees with headquarters and engineering development in Lake Orion, Michigan, and manufacturing in Springboro, Ohio.

About American Battery Solutions Inc.
Founded in 2019 by Subhash Dhar, ABS is a U.S.-based leader in advanced battery pack development and manufacturing for heavy duty applications. ABS designs and manufactures heavy-duty battery systems and solutions for transportation, industrial and commercial vehicle markets. ABS operates a 120,000 sq. ft. technical innovation center in Michigan and a dedicated 170,000 sq. ft purpose-built state of the art battery manufacturing facility in Ohio. It employs nearly 200 people in Michigan and Ohio. For more information, please visit americanbatterysolutions.com.

About Komatsu
Komatsu develops and supplies technologies, equipment and services for the construction, mining, forklift, industrial and forestry markets. For more than a century, the company has been creating value for its customers through manufacturing and technology innovation, partnering with others to empower a sustainable future where people, business and the planet thrive together. Front-line industries worldwide use Komatsu solutions to develop modern infrastructure, extract fundamental minerals, maintain forests, and create consumer products. The company's global service and distributor networks support customer operations to enhance safety and productivity while optimizing performance. For more information, visit komatsu.com.

Follow ABS on Facebook, Twitter @ABS_Energy and on LinkedIn.

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SOURCE American Battery Solutions

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