Komatsu will use ABS batteries in its expanding line of electric mining equipment; ABS will operate as a separate entity.

In a significant move for future battery manufacturing in the United States, Komatsu Ltd., through its United States-based subsidiary Komatsu America, has cut a deal to acquire American Battery Solutions Inc.

Located in the heart of the U.S. automotive industry, American Battery Solutions was founded in 2019 by long-time battery industry pioneer Subhash Dhar. Spun out from accumulated leadership experience in numerous lithium-ion companies, ABS quickly became a leader in advanced battery pack development and manufacturing for heavy-duty applications.

"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," said Dhar, who serves as CEO. "We are thankful for the support of our initial investors, KCK Group, and are pleased to enable a successful exit after only four and a half years. Komatsu's acquisition of ABS is testament to the intellectual and manufacturing assets ABS has developed in the span of four years."

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.

Komatsu plans to initially install ABS batteries in mining equipment for customers 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.

"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, chief technology officer and president of the development division at Komatsu.

The Komatsu acquisition comes on the heels of ABS launching a new transit bus battery pack for New Flyer Industries out of Winnipeg, Canada. Additionally, ABS has secured long-term supply agreements with leaders in key market segments, including the largest last-mile delivery vehicle fleet and the largest RV manufacturer.

This acquisition agreement signifies another major milestone for ABS and demonstrates the progress and strong positioning the company has in the advanced battery market.

Scheduled to close on Dec. 1, 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.

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.

As for Komatsu, it is committed to supporting ABS's existing and new customers, while 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.