Volvo Group Acquires Proterra For $210 Million

Join each day information updates from CleanTechnica on electronic mail. Or observe us on Google Information!

The temper across the canapé desk at CleanTechnica was somber in August after we discovered that Proterra had filed for chapter. We wish to suppose the EV revolution will ship all those that aspire to promoting electrical autos to the promised land of excessive gross sales and massive income, however that’s sadly not the case.

Simply as there are a whole lot of automobile firms which have come and gone since Karl Benz constructed his first automobile (many older readers are nonetheless dismayed that stalwarts corresponding to Pontiac and Plymouth have left the stage), there might be many electrical automobile producers who will fade into oblivion as properly. However we had excessive hopes for Proterra, we actually did.

Right here was an revolutionary firm that started off making electrical buses utilizing carbon fiber for low weight and sturdiness. It turned a charging and battery specialist which helped those that wished to transition to electrical autos determine find out how to make it occur.

Along with delivering dozens of its revolutionary electrical buses to the metropolis of Miami, it collaborated with Valley Transportation in Santa Clara County, California, to create a photo voltaic microgrid able to charging a number of electrical buses. It equipped Thomas Constructed Buses with battery packs for 200 electrical faculty buses and agreed to be the battery provider for Volta and Lightning eMotors electrical vans.

Manufacturing Batteries In California

Proterra’s new battery manufacturing line is co-located within the firm’s EV bus manufacturing facility in Los Angeles County.

Proterra opened a battery manufacturing heart in Los Angeles that put a precedence on giving internal metropolis residents a chance to be taught new expertise that may qualify them for good paying jobs within the electrical automobile {industry}. These employees are all members of United Metal Employees Native 675.

At the moment, the corporate mentioned, “Along with its transit enterprise, Proterra supplies its road-tested and confirmed electrical automobile expertise and experience to different heavy- and medium-duty business automobile producers by the corporate’s Proterra Powered program.”

“Proterra battery techniques have been chosen by world-class OEMs to introduce 100% battery-electric autos, together with supply vans, electrical faculty buses, coach buses, and low-floor cutaway shuttle buses. Up to now, Proterra Powered has helped world-class OEMs like Thomas Constructed Buses, Van Hool, Freightliner Customized Chassis Company (FCCC), Bustech, and Optimum-EV introduce 100% battery-electric autos which can be powered by Proterra electrical automobile expertise.”

With all that good karma on the basis of the corporate, how may it fail? However fail, it did. The gozoutas had been simply greater than the gozintas, which meant Proterra at all times wanted to borrow more cash to remain afloat. In September, the corporate admitted its enterprise mannequin was simply not sustainable and filed for chapter safety.

A Quiet Announcement

In a terse press launch dated November 10, 2023, Volvo Group mentioned, “Proterra Inc. and Proterra Working Firm Inc. are in a voluntary Chapter 11 chapter course of within the US. Volvo Group has been chosen because the profitable bidder in an public sale for the enterprise and property of the Proterra Powered enterprise unit at a purchase order value of $210 million.”

“The transaction between Proterra Inc. and Proterra Working Firm as sellers and Volvo is topic to approval by the chapter court docket within the US. As well as, closing of the transaction, which is anticipated early 2024, might be topic to merger clearance and sure different situations.

“The property to be acquired embody a improvement heart for battery modules and packs in California and an meeting manufacturing unit in South Carolina. With this acquisition, Volvo Group will complement the present, and speed up its future battery-electric highway map. The transaction has no materials affect on the Volvo Group monetary efficiency.”

Proterra filed for Chapter 11 chapter safety — which is successfully a self-administered chapter continuing for restructuring a enterprise — in August. At the moment, it spoke of a “strategic initiative to strengthen [its] monetary place and sharpen [its] expertise focus.”

Proterra CEO Gareth Joyce mentioned, “Proterra is on the forefront of the improvements which can be driving business automobile electrification. We all know we’re constructing industry-leading merchandise that our prospects need and wish. The inspiration we have now constructed has set the stage for decarbonization throughout the business automobile {industry} as an entire, and we acknowledge the good potential in all of our product choices to allow this vital transformation. For this reason we’re taking motion to separate every product line by the Chapter 11 reorganization course of to maximise their impartial potential.”

“Whereas our best-in-class EV and battery applied sciences have set an {industry} customary, we have now confronted numerous market and macroeconomic headwinds, which have impacted our means to effectively scale all of our alternatives concurrently. As business autos speed up in direction of electrification, we sit up for sharpening our focus as a number one EV battery expertise provider for the good thing about our many stakeholders,” mentioned Joyce. Proterra reported {hardware} bottlenecks in the summertime of 2022 and named the supply of elements as one of many greatest challenges.

Chapter 11 insolvency proceedings within the US permit an organization to reorganize whereas defending it from authorized actions by debtors till the reorganization is full. If an organization is bancrupt and sees no foundation for profitable continued operation, it terminates these operations in line with the principles of Chapter 7. Within the wake of the 2009 monetary disaster, Normal Motors additionally filed for Chapter 11 chapter proceedings.

Proterra went public in 2021 through a SPAC merger to facilitate entry to investor funds. On the time, the corporate was valued at $1.6 billion, together with debt. On the final shut of buying and selling earlier than the Chapter 11 chapter announcement, Proterra nonetheless had a market worth of $362 million.

Proterra Manufacturing facility In South Carolina

Proterra simply ramped up manufacturing at a brand new battery meeting plant in Greer, South Carolina, in January of this yr. The corporate operates one other plant in California. In each instances, cylindrical cells from LG Vitality Answer are processed into battery packs utilized in Proterra’s electrical buses and by third get together prospects. Since enterprise operations will proceed, the shopper tasks talked about stay unaffected for now.

One of many curiosities on this association is that Volvo Group is owned by Geely, a Chinese language producer of electrical autos that features such manufacturers as Zeeker, Geometry, Hyperlink ‘N Firm, London Electrical Automobile Firm, Lotus Vehicles,  Polestar, Proton, and Volvo Vehicles. Geely shares sometimes commerce within the $1.00 to $2.00 vary on NASDAQ, which could recommend the corporate has restricted market worth. And but it has managed to assemble an enormous presence on the earth of electrical autos.

We might be curious to see how Geely leverages its newfound acquisition. Volvo Group manufactures vans, buses, development gear, and energy options for marine and industrial functions. In different phrases, Proterra must be an ideal match for its enterprise.

There’s at all times the likelihood that at some point, Geely will get away of its low public profile and we are going to be taught it is likely one of the success tales of the marker transition from automobiles and vans with inside combustion engines to battery powered autos. And Proterra might be acknowledged as an vital a part of that success. Stranger issues have occurred within the auto enterprise.


Have a tip for CleanTechnica? Need to promote? Need to recommend a visitor for our CleanTech Discuss podcast? Contact us right here.

EV Obsession Each day!

I do not like paywalls. You do not like paywalls. Who likes paywalls? Right here at CleanTechnica, we carried out a restricted paywall for some time, however it at all times felt fallacious — and it was at all times powerful to resolve what we should always put behind there. In idea, your most unique and finest content material goes behind a paywall. However then fewer individuals learn it!! So, we have determined to fully nix paywalls right here at CleanTechnica. However…


Like different media firms, we’d like reader help! In case you help us, please chip in a bit month-to-month to assist our group write, edit, and publish 15 cleantech tales a day!



Neighborhood Photo voltaic Advantages & Development



CleanTechnica makes use of affiliate hyperlinks. See our coverage right here.

Leave a Reply

Your email address will not be published. Required fields are marked *