- Volvo electrifies its game with Proterra’s battery business buyout at $210 million.
- The deal brings cutting-edge facilities in California and South Carolina under Volvo’s electric umbrella.
- With eyes on the future, Volvo accelerates innovation, signalling a charged-up commitment to the electric revolution.
Volvo charges ahead, securing Proterra’s battery business for $210 million
In a strategic move, The Volvo Group has just electrified its portfolio with the confirmed acquisition of Proterra’s battery business and its subsidiary, Proterra Operating Company Inc. Valued at $210 million, before inventory adjustments at closing, this move charges Volvo’s ambitious electric roadmap with renewed vigor.
Proterra had previously filed for Chapter 11 bankruptcy protection in August 2023. Its Transit business line was subsequently acquired by Phoenix Motorcars.
This new acquisition includes a state-of-the-art development hub in California and an assembly plant in South Carolina. With the Proterra team’s expertise, these facilities promise to supercharge Volvo’s innovation in battery-electric vehicles, sparking a new era of mobility.
In a Linkedin post, Proterra commented;
“We proudly bring more than 400 of our Proterra teammates to carry the same innovative spirit that has helped transform commercial vehicle electrification through our industry-leading battery technology. As a standalone, independent business operating as Proterra within Volvo Group, our mission remains steadfastly committed to building innovative battery technology to power a better, more sustainable world.“
Volvo is set to run Proterra as a “going concern”, with a targeted customer base in mind. Anticipated not to make a substantial impact on Volvo’s financial performance, this acquisition signals a calculated step aligned with the company’s robust long-term growth strategies.
Lars Stenqvist, Volvo Group’s Chief Technology Officer, underscored the strategic significance of this acquisition;
“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.”
Volvo’s acquisition of Proterra’s battery business catapults it to the forefront of e mobility. With cutting-edge facilities and a committed team, Volvo is set to redefine the future of transportation. Led by Lars Stenqvist’s strategic vision, this acquisition signals a dynamic shift towards sustainable innovation in the automotive landscape.
