Volvo Group has been selected as the winning bidder in an auction for the battery business and assets of troubled Proterra in the United States with a $210 million bid.
The deal comes just a few months after the US electric bus and battery manufacturer filed for Chapter 11 bankruptcy protection in the US.
The transaction between Proterra Inc. and Proterra Operating Company as sellers and Volvo is subject to approval by the bankruptcy court in the US. In addition, closing of the transaction, which is expected early 2024, will be subject to merger clearance and certain other conditions.
The assets to be acquired include a development center for battery modules and packs in California and an assembly factory in South Carolina. With this acquisition, Volvo Group will complement the current, and accelerate its future, battery-electric road map.
In 2021, Proterra went public through a SPAC merger to enhance access to investor funds, with a valuation of 1.6 billion dollars.
Proterra makes battery packs for companies such as the Shyft Group, Nikola, Vicinity Motor and Daimler Truck North America’s Thomas Built Buses.
