Dive Brief:
- Battery and electric bus maker Proterra sold its battery business to Sweden-based Volvo for $210 million in a deal made public this month.
- After filing for Chapter 11 bankruptcy in August, Proterra put three business units up for sale, including the Proterra Powered segment, which manufactures batteries for medium- and heavy-duty commercial vehicles.
- The deal includes the purchase of Proterra’s battery module and pack development center in California and an assembly facility in South Carolina.
Dive Insight:
Proterra opened its EV battery system factory in Greer, South Carolina, this past January. The plant produces battery systems for Proterra Powered customers’ electric vehicles, including delivery and work trucks, industrial equipment and buses. Proterra’s Los Angeles battery pack facility, which opened in December 2020, will also be acquired by Volvo.
“With this acquisition, Volvo Group will complement the current, and accelerate its future, battery-electric road map,” the company said in a press release.
U.S.-based Proterra’s bankruptcy filing illustrated the harsh reality of being an EV startup in a sector grappling with high production costs and slowing demand in recent months.
"We have faced various market and macroeconomic headwinds that have impacted our ability to efficiently scale," Proterra CEO Gareth Joyce said in a statement at the time of the bankruptcy filing.
Proterra isn’t the only EV manufacturer struggling. Lordstown Motors filed for bankruptcy protection in June after a failed deal with contract manufacturer and investor Foxconn.
Proterra launched in 2004 as an electric bus maker before expanding into battery systems and powertrain production, as well as charging infrastructure.
Volvo is making moves in its renewable energy business on multiple fronts. The company inked a deal with building materials company CRH on Tuesday to accelerate production of net-zero on-road vehicles and off-road equipment. Volvo Group’s target is to have 35% fully electric sales by 2030 and be net zero in its value chain by 2040. CRH is targeting a 30% reduction in group-wide emissions by 2030 and to become a net-zero business by 2050.
The Proterra acquisition also comes just after Volvo Trucks launched a new EV charging business. The service, which will launch first in Sweden, lets haulers find and access charging stations via Volvo Connect and a mobile app.
The sale to Volvo is still subject to merger clearance and approval by the U.S. bankruptcy court on Nov. 28, while the closing is expected in early 2024.
