Volvo acquires Proterra's battery business for $210 mn in the US

Volvo Group recently announced the successful acquisition of EV battery business from Proterra Inc. and its subsidiary Proterra Operating Company Inc., thereby bolstering its EV manufacturing and supply chain capabilities in the United States. 

The company won bid for Proterra's business unit, which builds batteries and drivetrains for other heavy-duty vehicle builders, in November last year, for a purchase price of $ 210 million before adjustment for inventory level at closing. 

The acquisition includes a development center for battery modules and packs in California, and an assembly factory in Greer, South Carolina. Volvo intends to run Proterra as a going concern and deliver to selected customers. 

"These assets and the skills and competence of the Proterra team are a great complement to our current footprint and enables us to accelerate our battery-electric roadmap even further," said Lars Stenqvist, CTO Volvo Group.

The company has said that the latest acquisition is not going to have any material impact on its financial performance. Volvo Group claims that Proterra's expertise will complement the group's on-going roadmap for battery electric vehicles in the region and accelerate its future growth. 

It is to be noted that Proterra ran into financial troubles last year and filed for Chapter 11 bankruptcy protection last August. The bus maker cited supply chain disruption and nature of the business of producing highly customized products for each customer as the reasons for its bankruptcy. 

With Volvo Group winning the first auction, the second round of auction saw Phoenix Motorcars winning Proterra's transit bus operating company and CSI taking over its energy charging business unit.