Tritium, Australian EV Charger Maker, Goes Into Administration

Tritium, a Nasdaq-listed electric vehicle fast-charger company founded in Queensland, Australia, went into administration on Friday, citing lack of government support and failure in the US market. The company appointed KPMG Australia as voluntary administrators, and McGrathNicol as receivers and managers to secure the assets and stabilize the business operations.

Tritium was founded in 2001 and designed and manufactured proprietary hardware and software for advanced and reliable DC fast chargers for electric vehicles. The company had a global presence with offices in the US, UK, and Asia-Pacific region, and had sold over 13,000 chargers worldwide. However, its financial results fell short of forecasts due to supply chain issues and maintenance challenges with the chargers.

Why this matters: Tritium's collapse puts 180 local jobs at risk in Australia and raises concerns about the viability of domestic EV charging infrastructure companies. It also highlights the challenges faced by startups in scaling up and competing in the global market without sufficient government support.

The company had also closed its factory in Brisbane and shifted manufacturing to Tennessee, US. Tritium's share price had plummeted, leading to a delisting threat from Nasdaq, and the company had to undergo a reverse stock split to remain listed. The company had also secured a new $11.5 million loan facility to stay afloat, with the St Baker Family Trust as one of the lenders.

Tritium was once worth an estimated $2 billion, but had accumulated heavy losses in recent years amid rising competition from cheaper home-based AC charging equipment and EV giant Tesla's charging network. The company posted a loss of $120.3 million last financial year with net liabilities of $134 million, leading to doubts about its ability to continue as a going concern.

The administrators and receivers are now focused on stabilizing the company's operations and seeking a long-term solution, including a potential sale of the business and assets. "The receivers' priority is to stabilize the business and seek a long-term capital or ownership solution," said McGrathNicol in a statement. They aim to retain as many of Tritium's 450 employees as possible while engaging with interested parties to find long-term capital for the business.

Key Takeaways

• Tritium, an EV fast-charger company, went into administration due to lack of government support and US market failure.
• Tritium had a global presence but faced financial challenges due to supply chain issues and maintenance problems.
• Tritium's collapse puts 180 local jobs at risk and raises concerns about the viability of domestic EV charging companies.
• Tritium had accumulated heavy losses, leading to a delisting threat from Nasdaq and a reverse stock split.
• Administrators and receivers are seeking a long-term solution, including a potential sale of the business and assets.