The deal was valued at $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.
The acquisition comes at a time when Proterra was facing financial difficulties, as it filed for Chapter 11 bankruptcy protection in the U.S. in August 2023. The company cited various market and macroeconomic headwinds that have impacted its ability to scale efficiently.
The Volvo Group was selected as the winning bidder in an auction for Proterra’s battery business in November last year.
“These assets and the skills and competence of the Proterra team are a great complement to our current footprint and enable us to accelerate our battery-electric roadmap even further,” says Lars Stenqvist, CTO of Volvo Group.
The company stated that the acquisition is not going to have any material impact on its financial performance. Volvo Group claims that Proterra’s expertise will complement the company’s ongoing roadmap for battery electric vehicles.
Recently, EQT, a private equity firm, through its EQT Infrastructure VI fund, has agreed to acquire Statera Energy, a U.K.-based battery storage and flexible generation infrastructure developer and operator from InfraRed Capital Partners. Statera has 1 GW of flexible generation in operation and under construction, enough to power around 750,000 homes.
According to Mercom’s Annual and Q4 2023 Funding and M&A Report for Storage & Smart Grid. In 2023, 15 Energy Storage companies were acquired, compared to 28 in 2022.
Enovix Corporation, a silicon battery company, recently announced the acquisition of privately held Routejade, a Korean battery manufacturer. The acquisition provides Enovix with vertical integration of electrode coating and battery pack manufacturing while adding an established lithium-ion battery business with two factories in Korea.