Brisbane-based maker of EV chargers announces Australian exit
US government funding and access to capital is too appealing for cash-strapped TritiumOne of the world’s biggest producers of fast-chargers for electric vehicles, Queensland-based start-up Tritium, has announced it will close its Australian manufacturing operations in an attempt to maximise profits by consolidating its operations into its scaled plant in Tennessee, USA.
The shock exit is expected to cost almost 200 local jobs at the company’s Brisbane factory, but executives claim there are plans to “retain and grow” Tritium’s nearby test facility, which currently employs more than 200 people, as well as “its global services team and salesforce”.
According to Tritium CEO Jane Hunter, the major restructuring is necessary in order to drive profitability and shareholder value.
“This transition is aligned with the company’s plan to be profitable in 2024,” she said.
“The implementation of this plan, including the closure of the Brisbane factory and consolidating our manufacturing operations in Tennessee, supports the ongoing market competitiveness and positioning of the company as a world leader in its category, driven in part by the highly successful scale-up of our US plant and the NEVI [National Electric Vehicle Infrastructure] and BABA [Buy America Build America] programs in the United States, while bringing our manufacturing operations closer to our largest markets.
“These changes reduce our capital requirements and hasten the timing of the company becoming EBITDA positive.”
Tritium’s share price has bombed to just $US0.20, thereby valuing the company at $US34 million – much less than the $US2 billion equity valuation at the time of its NASDAQ listing in 2021. Unless Tritium’s share values rise back above $US1 in the near future it could be kicked off the NASDAQ all together.
According to the Australian Financial Review (AFR), Tritium unsuccessfully lobbied the Queensland government for a cash injection of up to $90 million, and approached National Reconstruction Fund (NRF) chairman Martijn Wilder in September about the prospect of early access to capital from the Albanese government’s $15 billion manufacturing fund.
The timing, nature and finer details of Tritium’s Australian factory closure are reportedly causing headaches for some shareholders who believe the move to America should’ve been made at least 12 months ago and are questioning why the remaining Brisbane positions are being retained.
These and other management decisions have also prompted some investors to stop pouring money into the company, at least until they see some positive growth.
Formed by three members of the SunShark solar car race team in 2001, Tritium has become one of the world’s biggest EV fast-charger makers, with close to 10,000 of its 350kW units now sold in over 40 countries including Australia, New Zealand, Europe and the US.
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