Fast Charging EV Company Closes Australian Plant, Pivots to US to ‘Achieve Profitability’

An EV charging car space in Calamvale of Brisbane, Australia, on Jan. 29, 2023. Daniel Teng/The Epoch Times

Electric vehicle fast-charging company Tritium will shutter its Brisbane factory and consolidate operations for better profitability in the United States.

This comes after the company reported a loss of $120.3 million (AU$189.2 million) for the 2022-23 financial year (pdf), compared to a loss of $298.6 million (AU$469.5 million) in the previous year.

Around 200 jobs will also be cut.

Tritium CEO Jane Hunter said it was necessary to close the Brisbane plant to remain competitive, while reducing general and administrative expenses.

Ms. Hunter previously said the company may be forced to close its Australian plant and move its headquarters to the United States if it is to remain financially viable.

“This transition is aligned with the company’s plan to be profitable in 2024,” Ms. Hunter said in a statement.

“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 U.S. plant and the NEVI and BABA programs in the United States, while bringing our manufacturing operations closer to our largest markets.”

While Tritium celebrates recent financial milestones, including record revenue and gross margin, Ms. Hunter acknowledges the importance of strategic restructuring to drive profitability and shareholder value.

Tritium Sought Government Bailout

In August, the company sought a $90 million equity injection from the Queensland government; however, the company did not get a response, reported the Australian Financial Review (AFR).

Tritium also put forth another option to the Palaszczuk government—a $30 million investment linked to a five-year job guarantee at its Brisbane factory, and a 10-year job guarantee at its headquarters—however, like the first option, no response from the government was received.

“It’s been extremely difficult in Australia to secure sources of capital,” Ms. Hunter said.

“To keep sovereign manufacturing capability, Australia will have to put money and legislation into it because just like [funding under America’s Inflation Reduction Act], that’s the only reason people are into factories over there.”

Ms. Hunter added that the Albanese government’s $3 billion National Reconstruction Fund, set to begin in 2024, will be too late for the struggling company.

“We’ve had discussions with all levels of government. Unfortunately, the National Reconstruction Fund won’t be ready for us to access it. It will be too late for us,” Ms. Hunter said.

“I think there’s a possibility that the CEFC [Clean Energy Finance Corporation] could come in, but we have to have a foundation investor and they have to be Australian.”

Tritium Previously Touted as ‘World’s Largest and Highest-Powered’ Testing Chamber

In 2021, the Palaszczuk government, along with Ms. Hunter, opened the company’s Brisbane facility, saying that it was a “huge milestone” for the state.

“We expect the growth in the state’s electric vehicle charging infrastructure will help accelerate investment in additional renewable energy projects,” Minister for Transport Mark Bailey said in November 2021.

However, the company has conceded its operating model has risks in the fast-charging sector, as reported by The Australian.

Currently, Tritium mainly focuses on public direct current (DC) charging stations for government and corporate fleets.

At the same time, Tritium’s competitors offer cheaper home-based alternating current (AC) equipment, thereby reducing the demand for the company’s public stations.

Tritium is one of the world’s largest manufacturers of fast chargers, and claims it has a fleet of more than 14,500 chargers across 47 countries. However, it has struggled to raise capital since the company was listed on the NASDAQ stock exchange in 2021.

While the company’s financial report shows it recorded revenue of $185 million (AU$292.4 million) for the 2023 financial year, the company recorded a gross negative margin of -2%.

Moreover, billionaire and Tritium shareholder Brian Flannery, said in early November that the company was too late in reducing its outgoings, and should have closed its Brisbane factory a year ago and moved manufacturing to the U.S.

Tritium opened its Tennessee plant in August 2022, which was seen as an important step in the company’s strategy to achieve Buy America Build America (BABA) compliance, as required by the $5 billion National Electric Vehicle Infrastructure (NEVI) Formula Program which funds fast chargers every 50 miles along American highways.

“They should have bitten the bullet and moved to the United States earlier and kept an R&D [research and development] centre in Brisbane,” Mr. Flannery said.

“They have to shut the Brisbane factory, that’s what they have to do.”

Federal Industry Minister Ed Husic has said the federal government would be reluctant to bail out Tritium while it looked at its options.

Earlier this year, Ms. Hunter said the company was earning 80 percent of its revenue in Europe and the U.S., and approximately 20 percent in Australia and New Zealand.

Tritium shares are currently trading at $0.20 (AU$0.31) having lost almost 98 percent of their value since being listed on the NASDAQ.