Brissie-based fast charger developer Tritium will combine with a Special Purpose Acquisition Company (SPAC) to list in the US with a valuation of $1.55 billion.

SPACs are big business in the US. They are shells, listed for the express purpose of merging with a private company.

The SPAC in question is Decarbonization Plus Acquisition Corporation II (catchy), which closed its IPO on February 8 in a heavily oversubscribed deal raising $403 million.

Post deal, Tritium will emerge with $300 million of cash on its balance sheet.

Tritium at a glance

Founded in 2001, Tritium manufactures advanced DC fast chargers for EV customers across the globe. It expects to rake in $84 million revenues in 2021 and will be cash flow positive in 2023.

Tritium chief exec Jane Hunter says fast charging will be big business.

“Drivers will want the experience of public charging to be as close as possible to their current experience at the gas pump – just a few minutes to get enough range to get on with your day,” she says.

“That’s what the high-power chargers that Tritium makes can offer.”

The projections for the number of DC fast chargers needed to power the world’s EVs are absolutely huge, Hunter says.

“From 2020 to 2040, excluding China, the number of chargers deployed is set to jump from 74,000 to 2.7 million – and that’s a conservative estimate,” she says.

“That’s 4.6 million fast chargers needed globally by 2040.”

‘A market leader’

Incoming chairman Robert Tichio says Tritium is already positioned to lead the market.

“There are now a handful of charging platforms in the public space. Each are different, but nearly all require investors to make a host of assumptions around network usage, adoption rates, electricity prices, sales margins on future electricity prices and even real estate selection,” he says.

“With Tritium, on the other hand, we believe the value proposition is quite straightforward. It is rooted in two questions: 1. Do you believe in the growth of EV charging? And 2. Do you believe in the growth of fast charging?

“We believe this company will be THE name synonymous with DC fast charging in the public market.

“In fact, if you’ve taken a New York City electric bus or driven on the Autobahn, you may have already been in a vehicle powered by a Tritium charger.”

The avenues for continued growth are extraordinary, Tichio says.

“Blue-chip companies, Fortune 100s, municipalities, vehicle OEMs – they are all now buyers of charging equipment – they are largely committed to making sure their employees or customers have access to fast, reliable charging,” he says.

“The strength of Tritium’s fast charging proposition – a 20-mile charge in a minute or a 100-mile charge in 5 minutes – will make fast charging an essential part of the infrastructure mix in the next decade.

“[We are] absolutely convinced that fast charging will represent the key catalyst to accelerate EV adoption as vehicle owners seek a ‘refuelling’ experience that is most similar to their gasoline refuelling experience.”

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