Komatsu announces plans to acquire American Battery Solutions

CHICAGO–(BUSINESS WIRE)–#mininginnovation–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, Michigan, U.S. Komatsu is planning to close the acquisition on Dec. 1, 2023, on the condition that all necessary procedures for the closing are completed. The immediate impact on Komatsu’s consolidated business results is estimated to be minimal.

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 optimized to 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 to 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 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 will aim to expand the use of batteries in construction equipment and to establish a global supply system. Komatsu will continue to support ABS’ battery business to further develop the electrification business post-acquisition.

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 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.

Through the acquisition, Komatsu will accelerate the development of battery-powered electric vehicles by utilizing ABS’ 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 realization of a decarbonized society. These efforts will help Komatsu achieve its management target of 50% reduction of CO2 emissions from the use of its products by 2030 (compared to 2010 levels) as well as the company’s challenge target of achieving its 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 develop and launch electric equipment to help achieve carbon neutrality, creating new value for customers with the development of new equipment, processes and technologies that will help operations step forward to the next stage for the workplace of the future and provide a more sustainable environment for the next generation.

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. To learn more, visit www.komatsu.com.

Contacts

Jill Rick

+1 262-337-0854

jill.rick@global.komatsu

Shawn-Laree O’Neil

+1 773-802-0377

shawn-laree.o’neil@global.komatsu