EV charging group Tritium in charges to $1.8bn Nasdaq listing

Brisbane-based electric vehicle charging company Tritium has sealed a $US1.4bn deal to list on Nasdaq following a merger with a US-based ‘blank cheque’ firm.

Brisbane-based electric vehicle charging company Tritium has sealed a $US1.4 billion ($1.8 billion) merger deal with a US investment firm that would see it list on the Nasdaq.

Details of the deal, outlined late Wednesday, involve Tritium merging with California-based investment firm Decarbonization Plus Acquisition Corp II and comes as the US prepares to pump trillions of dollars into the EV sector.

The ultimate Nasdaq listing could be a windfall for Queensland rich-lister Trevor St Baker, whose energy innovation fund is a major investor in Tritium. The company appointed ex-Boeing executive Jane Hunter as CEO last year as it added design and manufacturing facilities in California and Europe. The US company, backed by an affiliate of Riverstone Holdings, raised more then $US400 million in an initial public offering in February. Decarbonization Plus is a “blank cheque company” formed for the purpose of effecting a merger or similar business combination. Founded in 2000, New York-based Riverstone is an asset management firm that invests in the energy, power and infrastructure sectors.

The deal valued Tritium at $US1.4 billion with the transaction expected to generate proceeds of about $US403 million.

Tritium said on Wednesday the proceeds of the deal is expected to provide funds to grow its operations to three global manufacturing facilities, “with investment in a new production facility in Europe, expansion of its Los Angeles site, and further development of the Brisbane facilities”.

Gabriel Cheng at a Tritium charging site on the Gold Coast

The deal comes as the US, ­Europe and the UK set aggressive targets for the phasing out of petrol and diesel vehicles.

Tritium founder David Finn said earlier this year that the electrification of transportation was at a tipping point.

US President Joe Biden has proposed a $US400 billion public investment in the automobile industry to improve battery technology and change the federal vehicle fleet to electric cars and trucks, while also installing 500,000 electric vehicle charging stations.

The US Commerce Department is organising a conference next month to attract more electric vehicle manufacturing to the country.

Mr Biden’s proposed $US1.7 trillion infrastructure plan also earmarks $US174 billion to boost the domestic EV market with tax credits and grants for battery manufacturers.

Tritium, which exports most of its chargers to the US and ­Europe, earlier this year released a new and more powerful charging system that also provides new payment systems.

The new charger eliminated credit card payments allowing customers to pay through the charging cable when it communicates to the car directly.

The firm’s fastest units can add about 350km of driving range in 10 minutes of charging, according to the company.

Tritium said last month it had been selected by the US Army to help its efforts to convert its vehicles – including combat vehicles – to electric power.

The company has so far deployed more than 4,500 charging stations in 38 countries for customers including Nissan, Honda, the NASA Visitor Center, Topgolf, Circle-K, Harley-Davidson and Caltech.

Adding electric car charging infrastructure is seen as vital for automakers to spur sales, and crucial to governments as they seek to phase out combustion engine vehicles.

Mr St Baker, who is Tritium’s chairman, has long backed the company that was founded in 2001 by three PhD graduates who won a solar-powered car competition.

Mr St Baker visited Washington in 2018 to help drum up business for the company as part of a delegation led by then prime minister Malcolm Turnbull.

Mr St Baker talked up the potential of Tritium, which he said had the potential to become the biggest electric vehicle charging business in the US. “They are a big employer in Queensland and have been leading the charge to create an electric super highway,” he said on Wednesday.