John Deere acquiring ownership stake in battery tech provider

John Deere signed an agreement to acquire majority ownership in Kreisel Electric, a battery technology provider based in Austria.

According to John Deere, Kreisel develops high-density, high-durability electric battery modules and packs. Kreisel has developed a charging infrastructure platform that utilizes this battery technology.

John Deere sees demand growing for batteries as a sole- or hybrid-propulsion system for off-highway vehicles. Products in John Deere’s portfolio such as turf equipment, compact utility tractors, small tractors, compact construction equipment and some roadbuilding equipment could rely solely on batteries as a primary power source, the company says.

The majority investment in Kreisel Electric will allow John Deere to integrate vehicle and powertrain designs around high-density battery packs while leveraging Kreisel’s charging technology to build out infrastructure required for customer adoption.

“Kreisel’s battery technology can be applied across the broad portfolio of Deere products, and Kreisel’s in-market experience will benefit Deere as we ramp up our battery-electric vehicle portfolio,” says Pierre Guyot, senior vice president of John Deere Power Systems. “Deere will provide the expertise, global footprint and funding to enable Kreisel to continue its fast growth in core markets. This is an opportunity to invest in a company with unique technology that’s designed for the demanding conditions where Deere customers work.”

The transaction requires final regulatory approval in Austria, with closing expected to take place in about 60 days. Financial details were not disclosed.