Volvo Group has been selected as the winning bidder in an auction for the business and assets of the Proterra Powered business unit for the price of $210 million. Proterra Inc. and Proterra Operating Co. are currently in a voluntary Chapter 11 bankruptcy process.
The transaction, subject to approval by the bankruptcy court in the U.S., is expected to close in early 2024, subject to customary approvals.
Volvo is attempting to acquire 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.
“This acquisition makes perfect sense as it will enable Volvo to ‘go faster’ with its electrification strategy and give it a battery manufacturing facility to support its U.S. operations,” said Alastair Hayfield, senior research director at market intelligence firm Interact Analysis.