Tritium to Go Public: EV Fast Charger Maker Valued at $1.2B

Tritium to Go Public via SPAC Merger

A new special purpose acquisition company (SPAC) deal has emerged in the electric vehicle (EV) mobility sector. Tritium, a Brisbane-based firm specializing in the development and production of direct current (DC) fast EV chargers, is set to enter the public market through a merger.

Deal Details and Valuation

Tritium announced on Wednesday its plans to list on the Nasdaq exchange by merging with Decarbonization Plus Acquisition Corp. II (DCRN). A definitive timeline for the transaction’s completion remains undisclosed. The deal is projected to yield gross proceeds of up to $403 million, and Tritium will trade under the ticker symbol “DCFC.”

Unique SPAC Structure

This particular SPAC transaction stands out due to the absence of a private investment in public equity (PIPE) component. PIPEs are commonly utilized during mergers to inject additional capital into the company.

According to Tritium CEO Jane Hunter, a PIPE wasn't necessary. She explained to TechCrunch that DCRN holds over $400 million in assets, and shareholders have committed to a minimum cash closing of $200 million, which effectively minimizes redemption risk.

Revenue Growth and Market Position

Hunter further highlighted the company’s strong financial performance. Tritium has experienced a compound annual growth rate (CAGR) of 56% in revenue since 2016, driven by expansion in key markets like the U.S. and Europe, where it holds a substantial market share. This growth reduces the need for external funding to support its strategic initiatives.

Tritium’s Technology and Charging Capabilities

Established in 2001, Tritium focuses on manufacturing both the hardware and software for DC fast chargers. These chargers can add approximately 20 miles of range to an EV battery in just one minute, or 100 miles in five minutes, as stated by DPAC II chairman Robert Tichio during a Wednesday investor call.

While DC chargers are more expensive than alternating current (AC) chargers, they deliver power to the vehicle at a significantly faster rate. AC chargers are typically used for overnight home charging, whereas DC chargers are more prevalent at public charging stations.

The Future of Public Charging

Hunter emphasized the importance of replicating the speed and convenience of gasoline refueling at public charging stations. The goal is to provide drivers with a quick charging experience, allowing them to gain sufficient range to continue their journeys.

Geographic Market Breakdown

Currently, Europe represents Tritium’s largest market, contributing around 70% of the company’s revenue. North America accounts for 20%, and Asia for 10%, as reported by Hunter to investors on Wednesday. The funds obtained from this transaction will be allocated to expanding manufacturing capabilities and bolstering sales efforts.

Growth in the EV Charging Infrastructure Market

The demand for public EV charging stations is anticipated to increase substantially in the coming decades, mirroring the growing adoption of EVs. Analysts at Grandview Research valued the EV charging infrastructure market at $2 billion in 2020.

Projections indicate a growth rate of nearly 39% through 2028. President Joe Biden has identified the development of a national EV charging network as a crucial component of his proposed $2 trillion infrastructure plan.