Volvo snaps up Proterra battery business in bankruptcy sale

Swedish manufacturing giant Volvo Group will acquire the battery business of bankrupt American electric vehicle (EV) and powertrain manufacture Proterra in a deal worth $US210 million.

Founded back in 2004, Proterra was once a leading electric transit bus manufacturer before it diversified to develop its own battery technology and powertrains in 2015.

However, as with a number of smaller EV-focused companies, recent supply chain constraints and financial difficulties have forced many into bankruptcy, as happened to Proterra back in August – a decision which also led in part to Swedish electric truck start-up Volta Trucks being also forced to file for bankruptcy in October.

Proterra announced late last week that it had concluded its Chapter 11 sales process, with Volvo Group’s Volvo Battery Solutions winning the bid to acquire its Proterra Powered business unit.

The acquisition, worth $US210 million will see Volvo Battery Solutions acquire a battery development centre in California and an assembly factory in South California.

“We entered into the Chapter 11 process with a mission to maximize the potential of each of our product lines,” said Gareth Joyce, Proterra CEO.

“Today, we have taken an important step towards that goal for our Proterra Powered business.”

Volvo’s acquisition is subject to the bankruptcy court’s approval, as well as regulatory approvals and closing conditions.