Swedish Truck Maker to Buy Bankrupt EV Battery Maker
GOTHENBURG, Sweden — Swedish truck maker Volvo Group said it has prevailed in a bankruptcy auction for a failed EV battery manufacturer that once planned to make batteries for thousands of electric trucks, buses and vans at a factory in upstate South Carolina.
Volvo said it bid $210 million for Proterra Powered, the Proterra division that makes battery systems for electric-powered commercial vehicles.
The division was one of three business lines that Proterra put up for sale through bankruptcy proceedings in August.
The two remaining divisions, Proterra Energy, which makes charging equipment, and Proterra Transit, which makes electric transit buses for state and local transit agencies, were reportedly scheduled to be auctioned off on Monday.
The deal for Proterra Powered is subject to the bankruptcy court’s approval, as well as regulatory approvals and closing conditions.
Proterra announced its intention to build its first purpose-built, high-volume battery production plant in Greer, South Carolina, with much fanfare in December 2021.
At the time it said the 327,000-square-foot battery plant would create 200 new jobs, but supply chain issues, burdensome contracts and other issues dogged the company from the start.
Still, the acquisition by Volvo Group is seen as something of a win for the commercial EV sector, showing that there’s still faith in the global electric truck and bus market.
Volvo Group said it will seek the bankruptcy court’s approval of the acquisition on Nov. 28.