Komatsu president and chief executive officer Hiroyuki Ogawa and ABS founder and chairman Subhash DharJapanese equipment maker Komatsu plans to acquire Detroit-based American Battery Solutions (ABS) through its subsidiary Komatsu America Corp as it continues its decarbonisation push.
The acquisition of ABS, which develops and manufactures heavy-duty and industrial lithium-ion battery packs, is expected to close on 1 December.
ABS will operate as a stand-alone business entity within Komatsu and will continue its current and prospective customer programs in the commercial vehicle segments.
Komatsu says the acquisition will allow it to develop and produce its own battery-operated construction and mining equipment, with products to be rolled out initially to the mining sector in the North and South American markets.
ABS currently makes battery packs for commercial vehicles, transit buses and on- and off-road vehicles, while Komatsu supplies technologies, equipment and services for the construction, mining, forklift, industrial and forestry markets.
Komatsu has set a target of reducing the CO2 emissions from the use of its products by 2030 (compared to 2010 levels) by 50%. The company itself plans to be carbon neutrality by 2050.