Volvo, the Chinese-owned lorry maker, has acquired the battery business of struggling electric bus maker Proterra for US$210 million after winning an auction.
Proterra is going through a voluntary Chapter 11 process in the US and Volvo said final completion is expected next year after approval by the bankruptcy court.
Assets included in the sale include a development centre for battery modules and packs in California and an assembly factory in South Carolina.
Volvo, which makes trucks as well as electric cars, said the transaction will have no material impact on its financial performance.
Sweden-based Volvo is around 80% owned by Chinese carmaker Geely.