Volvo Group has won an auction for Proterra’s battery business with a bid of $210 million – here’s what that means for the EV industry.
Volvo Group buys Proterra Powered
By acquiring the Proterra Powered business unit, Gothenburg, Sweden-HQ’ed Volvo Group is expected to gain a development center for battery modules and packs in California and an assembly factory in South Carolina.
Proterra Powered‘s current remit is to transform medium- and heavy-duty commercial vehicles into EVs. Volvo Group makes trucks, buses, and construction equipment.
The transaction between California-based EV battery and platform developer Proterra and Volvo Group is, of course, subject to approval by the US bankruptcy court, but the closing is expected in early 2024.
Earlier this year, Proterra combined battery and bus production at its South Carolina facility alongside job cuts to cut costs. But supply chain and funding problems, as well as funding needed to scale, ultimately resulted in Proterra filing for Chapter 11 bankruptcy in August, as Electrek reported.
Gareth Joyce, Proterra’s CEO, said in a statement today:
We entered into the Chapter 11 process with a mission to maximize the potential of each of our product lines. Today, we have taken an important step toward that goal for our Proterra Powered business.
Alastair Hayfield, senior research director at market intelligence firm Interact Analysis, said in an email:
When Proterra filed for Chapter 11 bankruptcy, we predicted that it would make sense for a legacy OEM to acquire the business and integrate it into their own.
What is not clear is whether Proterra’s agreements with other OEMs will remain. For example, Komatsu Construction had an agreement in place for the supply of batteries; it is unknown at this point if that will continue.
Electrek’s Take
Joyce says the sale is a way to “maximize the potential” of Proterra Powered – and it’s now going to be Volvo Group doing that instead of Proterra. And ultimately, as long as the manufacturing centers and the technology don’t go to waste, this is good news for the EV transition.
I asked my colleague Scooter Doll what he thought Joyce meant, as we’ve both covered Proterra regularly. He thinks Joyce is saying that it’s rough out there for smaller companies and startups. Proterra couldn’t do it alone, and the goal of bankruptcy was to get bought out so its tech could continue to be put to good use.
This is going to accelerate Volvo Group’s battery-electric road map, and this sale is a lifeline to scale commercial EVs and more. Plus, it should work to Volvo Group’s benefit in some form when it comes to the “American-made” battery requirement in the Inflation Reduction Act for tax credits. So it’s not the dream scenario for Proterra, but ultimately, this acquisition is a good outcome for both companies.
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GreenPower Motor Company says it’s received three orders for 11 of its BEAST electric Type D school buses for western state school districts in Arizona, California, and Oregon.
GreenPower hasn’t made the sort of headline-grabbing promises or big-money commitments that companies like Nikola and Lion Electric have, but while those companies are floundering GPM seems to be plugging away, taking orders where it can and actually delivering buses to schools. Late last year, the company scored 11 more orders for its flagship BEAST electric school bus.
As far as these latest orders go, the breakdown is:
seven to Los Banos Unified School District in Los Banos, California
two for the Hood River County School District in Hood River, Oregon
two for the Casa Grande Elementary School District in Casa Grande, Arizona
Those two BEAST electric school buses for Arizona will join another 90-passenger BEAST that was delivered to Phoenix Elementary School District #1, which operates 15 schools in the center of Phoenix, late last year.
“As school districts continue to make the change from NOx emitting diesel school buses to a cleaner, healthier means of transporting students, school district transportation departments are pursuing the gold standard of the industry – the GreenPower all-electric, purpose-built (BEAST) school buses,” said Paul Start, GreenPower’s Vice President of Sales, School Bus Group. “(The) GreenPower school bus order pipeline and production schedule are both at record levels with sales projections for (2025) set to eclipse the 2024 calendar year.”
GreenPower moved into an 80,000-square-foot production facility in South Charleston, West Virigina in August 2022, and delivered its first buses to that state the following year.
Electrek’s Take
Since the first horseless carriage companies started operating 100 years ago (give or take), at least 1,900 different companies have been formed in the US, producing over 3,000 brands of American automobiles. By the mid 1980s, that had distilled down to “the big 3.”
All of which is to say: don’t let the recent round of bankruptcies fool you – startups in the car and truck industry is business as usual, but some of these companies will stick around. If you’re wondering which ones, look to the ones that are making units, not promises.
While some recent high-profile bankruptcies have cast doubt on the EV startup space recently, medium-duty electric truck maker Harbinger got a shot of credibility this week with a massive $100 million Series B funding round co-led by Capricorn’s Technology Impact Fund.
It’s been a rough couple of weeks for fledgling EV brands like Lion Electric and Canoo, but box van builder Harbinger is bucking the trend, fueling its latest funding round with an order book of 4,690 vehicles that’s valued at nearly $500 million. Some of the company’s more notable customers including Bimbo Bakeries (which owns brands like Sara Lee, Thomas’, and Entenmann’s) and THOR Industries (Airstream, Jayco, Thor), which is also one of the investors in the Series B.
The company plans to use the funds to ramp up to higher-volume production capacity and deliver on existing orders, as well as build-out of the company’s sales, customer support, and service operations.
“Harbinger is entering a rapid growth phase where we are focused on scaling production of our customer-ready platform,” said John Harris, co-founder and CEO. “These funds catalyze significant revenue generation. We’ve developed a vehicle for a segment that is ripe for electrification, and there is a strong product/market fit that will help fuel our upward trajectory through 2025 and beyond.”
The company has raised $200 million since its inception in 2021.
There is no state more associated with cars and car culture than Michigan – and the state that’s home to the Motor City has just taken a huge step into the future with the deployment of its first-ever all electric police vehicle.
The 2024 Ford Mustang Mach-E patrol vehicle is assigned to the Michigan State Police State Security Operations Section, and will be to be used by armed, uniformed members of the MSP specializing in general law enforcement and security services at state-owned facilities in the Lansing, MI area.
“This is an exciting opportunity for us to research, in real time, how a battery electric vehicle performs on patrol,” says Col. James F. Grady II, director of the MSP. “Our state properties security officers patrol a substantially smaller number of miles per day than our troopers and motor carrier officers, within city limits and at lower speeds, coupled with the availability of charging infrastructure in downtown Lansing, making this the ideal environment to test the capabilities of a police-package battery electric vehicle.”
In those tests, the EVs have impressed – but the MSP has been hesitant to commit to a BEV until now. “We began testing battery electric vehicles in 2022, but up until now hybrids were the only alternative fuel vehicle in our fleet,” said Lt. Nicholas Darlington, commander of the Precision Driving Unit. “Adding this battery electric vehicle to our patrol fleet will allow us to study the vehicle’s performance long-term to determine if there is a potential for cost savings and broader applicability within our fleet.”