Carbon Revolution warns of cash crunch as demand drops

Carbon Revolution’s woes have deepened as the Geelong manufacturer reveals falling demand and an urgent need for fresh capital despite recent cash injections.

Carbon Revolution founders Jake Dingle, Ashley Denmead and Brett Glass in 2019. Mr Dingle departed as chief executive earlier this year, while Mr Denmead remains as chief technology officer. Picture: David Geraghty.

A Geelong manufacturer concedes demand for its products is on the wane and that it will need to soon put its hand out for more cash amid uncertainty about its future.

Less than two months after it axed an estimated 10 per cent of its local workforce, an update from Carbon Revolution to the US stock exchange has raised more concern about the company’s path ahead.

The company confirmed New York firm Orion Infrastructure Capital had handed over the final US$5m tranche of a US$25m facility.

Additionally, Carbon Revolution received the last US$400,000 of a US$2m loan that dates back to May 2023.

Despite the cash injection, the company said in a statement to the Nasdaq that it was already in discussions with OIC about the need for further funding.

“The company has a number of new programs entering, or expected to enter, production in the near term, however as a result of a decline in the volume of wheels ordered or projected to be ordered by certain customers, the company has revised its revenue forecasts downward and slowed its short-term expansion plans,” it said.

“As a result of the decline in revenue forecasts and delays in receipt of certain customer payments, the company expects that it may need to obtain additional funding within the next quarter.”

Former Carbon Revolution chief executive Jake Dingle with then federal treasurer Josh Frydenberg in 2021. Picture: David Crosling.

Carbon Revolution was spun out of Deakin University and has evolved from a small start-up focused on research and development to a supplier of lightweight carbon fibre wheels to the automotive sector.

It has received significant government funding along the way, including a $12m grant announced by the then Coalition government just days out from the 2022 federal election.

Carbon’s 10,000sq m headquarters at Deakin has been a must-stop destination for visiting politicians keen to promote their support of modern manufacturing.

Multiple requests to interview senior management have gone unanswered, as was the case last month when it was revealed that approximately 30 of Carbon’s Deakin-based staff had been shown the door.

Co-founder Jake Dingle was replaced by industry veteran Donnie Hampton Jnr in March.

Automotive industry veteran Donnie Hampton Jnr joined Carbon Revolution as chief executive in March 2025.

The company confirmed a fortnight ago it had received its second non-compliance letter from Nasdaq’s listing department in as many months after it failed to file a financial statement for the six-month period to December 2024.

That came after Carbon was told it was not compliant with the US$10m minimum stockholders’ equity requirement for continued listing.

Carbon’s 45 days to submit a plan to regain compliance has passed, but the document has either not been submitted or not made public.

Former Labor leader Bill Shorten and Corangamite MP Libby Coker during the 2019 federal election campaign. Picture: Liam Kidston.

The company’s 2023/24 annual statement, which was submitted late and reported a $221m loss, warned: “As a result of our recurring losses from operations, accumulated deficit and projected capital needs, significant doubt exists regarding the company’s ability to continue as a going concern within the 12 months after the issuance date of these consolidated financial statements.”

The company’s share price has fluctuated significantly since its move to the Nasdaq in 2023.

Its current price of US$5.42 is down 40 per cent from a year ago and represents a market cap of US$10.2m.

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Originally published as Carbon Revolution warns of cash crunch as demand drops