John Deere Invests In Electrification of Its Future
Deere & Company has announced a majority investment in Kreisel Electric, an Austrian-based company which was founded by two brothers in 2014.
Kreisel is a battery technology company which will help John Deere vertically integrate vehicle and powertrain designs. Kreisel has developed a patented battery technology for high-density, high-durability electric battery modules and packs along with a charging infrastructure platform (CHIMERO).
In the Deere announcement, the company said it sees growing demand for batteries as the sole or hybrid propulsion system for off-highway vehicles naming turf, compact utility tractors, small tractors, compact construction and some road building equipment.
"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. Deere will provide the expertise, global footprint, and funding to enable Kreisel to continue its fast growth in core markets," Pierre Guyot, Senior Vice President, John Deere Power Systems said in the company announcement. "This is an opportunity to invest in a company with unique technology that's designed for the demanding conditions where Deere customers work.”
Deere sees a future that includes a zero emissions propulsion system.
"Furthermore, building an electrified portfolio is key to John Deere's sustainability goal of pursuing new technologies that reduce the environmental impact of new products and work toward zero emissions propulsion systems on equipment, while increasing our customers' efficiency and productivity," said Guyot.
The transaction must meet regulatory approval in Austria and is expected to close in about 60 days.
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