Volvo is buying bankrupt Proterra’s battery business for $210M – here’s what that means
Volvo Group has won an auction for Proterra’s battery business with a bid of $210 million – here’s what that means for the EV industry.
Volvo Group buys Proterra Powered
By acquiring the Proterra Powered business unit, Gothenburg, Sweden-HQ’ed Volvo Group is expected to gain a development center for battery modules and packs in California and an assembly factory in South Carolina.
Proterra Powered‘s current remit is to transform medium- and heavy-duty commercial vehicles into EVs. Volvo Group makes trucks, buses, and construction equipment.
The transaction between California-based EV battery and platform developer Proterra and Volvo Group is, of course, subject to approval by the US bankruptcy court, but the closing is expected in early 2024.
Earlier this year, Proterra combined battery and bus production at its South Carolina facility alongside job cuts to cut costs. But supply chain and funding problems, as well as funding needed to scale, ultimately resulted in Proterra filing for Chapter 11 bankruptcy in August, as Electrek reported.
Gareth Joyce, Proterra’s CEO, said in a statement today:
We entered into the Chapter 11 process with a mission to maximize the potential of each of our product lines. Today, we have taken an important step toward that goal for our Proterra Powered business.
Alastair Hayfield, senior research director at market intelligence firm Interact Analysis, said in an email:
When Proterra filed for Chapter 11 bankruptcy, we predicted that it would make sense for a legacy OEM to acquire the business and integrate it into their own.
What is not clear is whether Proterra’s agreements with other OEMs will remain. For example, Komatsu Construction had an agreement in place for the supply of batteries; it is unknown at this point if that will continue.
Electrek’s Take
Joyce says the sale is a way to “maximize the potential” of Proterra Powered – and it’s now going to be Volvo Group doing that instead of Proterra. And ultimately, as long as the manufacturing centers and the technology don’t go to waste, this is good news for the EV transition.
I asked my colleague Scooter Doll what he thought Joyce meant, as we’ve both covered Proterra regularly. He thinks Joyce is saying that it’s rough out there for smaller companies and startups. Proterra couldn’t do it alone, and the goal of bankruptcy was to get bought out so its tech could continue to be put to good use.
This is going to accelerate Volvo Group’s battery-electric road map, and this sale is a lifeline to scale commercial EVs and more. Plus, it should work to Volvo Group’s benefit in some form when it comes to the “American-made” battery requirement in the Inflation Reduction Act for tax credits. So it’s not the dream scenario for Proterra, but ultimately, this acquisition is a good outcome for both companies.
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Volvo Group has won an auction for Proterra’s battery business with a bid of $210 million – here’s what that means for the EV industry.
Volvo Group buys Proterra Powered
By acquiring the Proterra Powered business unit, Gothenburg, Sweden-HQ’ed Volvo Group is expected to gain a development center for battery modules and packs in California and an assembly factory in South Carolina.
Proterra Powered‘s current remit is to transform medium- and heavy-duty commercial vehicles into EVs. Volvo Group makes trucks, buses, and construction equipment.
The transaction between California-based EV battery and platform developer Proterra and Volvo Group is, of course, subject to approval by the US bankruptcy court, but the closing is expected in early 2024.
Earlier this year, Proterra combined battery and bus production at its South Carolina facility alongside job cuts to cut costs. But supply chain and funding problems, as well as funding needed to scale, ultimately resulted in Proterra filing for Chapter 11 bankruptcy in August, as Electrek reported.
Gareth Joyce, Proterra’s CEO, said in a statement today:
We entered into the Chapter 11 process with a mission to maximize the potential of each of our product lines. Today, we have taken an important step toward that goal for our Proterra Powered business.
Alastair Hayfield, senior research director at market intelligence firm Interact Analysis, said in an email:
When Proterra filed for Chapter 11 bankruptcy, we predicted that it would make sense for a legacy OEM to acquire the business and integrate it into their own.
What is not clear is whether Proterra’s agreements with other OEMs will remain. For example, Komatsu Construction had an agreement in place for the supply of batteries; it is unknown at this point if that will continue.
Electrek’s Take
Joyce says the sale is a way to “maximize the potential” of Proterra Powered – and it’s now going to be Volvo Group doing that instead of Proterra. And ultimately, as long as the manufacturing centers and the technology don’t go to waste, this is good news for the EV transition.
I asked my colleague Scooter Doll what he thought Joyce meant, as we’ve both covered Proterra regularly. He thinks Joyce is saying that it’s rough out there for smaller companies and startups. Proterra couldn’t do it alone, and the goal of bankruptcy was to get bought out so its tech could continue to be put to good use.
This is going to accelerate Volvo Group’s battery-electric road map, and this sale is a lifeline to scale commercial EVs and more. Plus, it should work to Volvo Group’s benefit in some form when it comes to the “American-made” battery requirement in the Inflation Reduction Act for tax credits. So it’s not the dream scenario for Proterra, but ultimately, this acquisition is a good outcome for both companies.
To limit power outages and make your home more resilient, consider going solar with a battery storage system. In order to find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use and you won’t get sales calls until you select an installer and you share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisers to help you every step of the way. Get started here. – ad*
FTC: We use income earning auto affiliate links. More.
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