Source: Getty IMages/ 3alexd

Tritium could not withstand its expenses for long and continued to grapple to make profits while witnessing a stressed balance sheet

Australian electric vehicle charging-equipment manufacturer Tritium DCFC Ltd. has declared insolvency on April 18 amid a global slowdown in the sale of electric cars, and the continued struggle for EV supply equipment (EVSE) suppliers and charge-point operators (CPOs) to maintain profitability.

In a regulatory note dated April 18 to the US SEC, the company, which traded on the Nasdaq stock exchange, said that its board of directors have resolved that the company, along with its three subsidiaries, were either insolvent or likely to become insolvent.

“On April 18, 2024, by resolutions of their boards, it was determined that the company and three of its Australian subsidiaries — Tritium Pty Ltd, Tritium Holdings Pty Ltd and Tritium Nominee Pty Ltd — were insolvent or likely to become insolvent,” it said, requesting the SEC to appoint a voluntary administrator under the Australian Corporations Act 2001.

While Tritium’s headquarters continued to be in Australia, the company was listed on the Nasdaq in 2022 via a special purpose acquisition company merger. The listing was aimed at raising public funds and tapping into the growing North American EV charging market. Tritium opened its EV charger production plant in Tennessee, US, in August 2022, with a capacity of producing up to 30,000 fast chargers per year. The EVSE plant in the US was seen as an important step in the company’s strategy to achieve Buy America Build America (BABA) compliance, which is required under the US government’s $5 billion National Electric Vehicle Infrastructure (NEVI) Formula Program.

However, the company could not withstand its expenses for long and continued to grapple to make profits while witnessing a stressed balance sheet.

Reportedly, Tritium’s unstable financial situation was evident in November 2023 when it decided to shut down its EVSE plant in Brisbane, Australia, after the government of the state of Queensland, Australia, declined to provide an incentive package to support the factory. The move was also focused on consolidating its global research and development, and production operations at its Tennessee, US, facility.

At the time, Tritium CEO Jane Hunter said "strategic restructuring of our business is necessary to drive both profitability and shareholder value." The company termed the shutdown of its Brisbane plant and consolidation of global manufacturing operations at Tennessee as its business strategy to "achieve profitability in 2024 and reduce external capital requirements."

Five months later, Tritium has filed a regulatory note to the SEC, requesting to appoint Peter James Gothard, James Douglas Dampney and William Martin Colwell of KPMG as joint and several administrators, pursuant to section 436A of the Act, to oversee the legal proceedings.

Once the administrators are appointed, the powers of the directors of the impacted companies are suspended, and the administrators take control of the affairs, subject to the appointment. That said, the company’s other subsidiaries will continue to operate as regular businesses outside the voluntary administration.

It remains unclear whether the company, which has in the recent past, received large orders from global energy companies such as BP and Shell, as well as high profile CPOs such as Ionity, will be able to fulfill its EV charger installation commitments, if not already served.


Copyright © 2024 S&P Global Inc. All rights reserved.

These materials, including any software, data, processing technology, index data, ratings, credit-related analysis, research, model, software or other application or output described herein, or any part thereof (collectively the “Property”) constitute the proprietary and confidential information of S&P Global Inc its affiliates (each and together “S&P Global”) and/or its third party provider licensors. S&P Global on behalf of itself and its third-party licensors reserves all rights in and to the Property. These materials have been prepared solely for information purposes based upon information generally available to the public and from sources believed to be reliable.
Any copying, reproduction, reverse-engineering, modification, distribution, transmission or disclosure of the Property, in any form or by any means, is strictly prohibited without the prior written consent of S&P Global. The Property shall not be used for any unauthorized or unlawful purposes. S&P Global’s opinions, statements, estimates, projections, quotes and credit-related and other analyses are statements of opinion as of the date they are expressed and not statements of fact or recommendations to purchase, hold, or sell any securities or to make any investment decisions, and do not address the suitability of any security, and there is no obligation on S&P Global to update the foregoing or any other element of the Property. S&P Global may provide index data. Direct investment in an index is not possible. Exposure to an asset class represented by an index is available through investable instruments based on that index. The Property and its composition and content are subject to change without notice.

THE PROPERTY IS PROVIDED ON AN “AS IS” BASIS. NEITHER S&P GLOBAL NOR ANY THIRD PARTY PROVIDERS (TOGETHER, “S&P GLOBAL PARTIES”) MAKE ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, FREEDOM FROM BUGS, SOFTWARE ERRORS OR DEFECTS, THAT THE PROPERTY’S FUNCTIONING WILL BE UNINTERRUPTED OR THAT THE PROPERTY WILL OPERATE IN ANY SOFTWARE OR HARDWARE CONFIGURATION, NOR ANY WARRANTIES, EXPRESS OR IMPLIED, AS TO ITS ACCURACY, AVAILABILITY, COMPLETENESS OR TIMELINESS, OR TO THE RESULTS TO BE OBTAINED FROM THE USE OF THE PROPERTY. S&P GLOBAL PARTIES SHALL NOT IN ANY WAY BE LIABLE TO ANY RECIPIENT FOR ANY INACCURACIES, ERRORS OR OMISSIONS REGARDLESS OF THE CAUSE. Without limiting the foregoing, S&P Global Parties shall have no liability whatsoever to any recipient, whether in contract, in tort (including negligence), under warranty, under statute or otherwise, in respect of any loss or damage suffered by any recipient as a result of or in connection with the Property, or any course of action determined, by it or any third party, whether or not based on or relating to the Property. In no event shall S&P Global be liable to any party for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees or losses (including without limitation lost income or lost profits and opportunity costs or losses caused by negligence) in connection with any use of the Property even if advised of the possibility of such damages. The Property should not be relied on and is not a substitute for the skill, judgment and experience of the user, its management, employees, advisors and/or clients when making investment and other business decisions.

The S&P Global logo is a registered trademark of S&P Global, and the trademarks of S&P Global used within this document or materials are protected by international laws. Any other names may be trademarks of their respective owners.

The inclusion of a link to an external website by S&P Global should not be understood to be an endorsement of that website or the website's owners (or their products/services). S&P Global is not responsible for either the content or output of external websites. S&P Global keeps certain activities of its divisions separate from each other in order to preserve the independence and objectivity of their respective activities. As a result, certain divisions of S&P Global may have information that is not available to other S&P Global divisions. S&P Global has established policies and procedures to maintain the confidentiality of certain nonpublic information received in connection with each analytical process. S&P Global may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P Global reserves the right to disseminate its opinions and analyses. S&P Global Ratings’ public ratings and analyses are made available on its sites, (free of charge) and (subscription), and may be distributed through other means, including via S&P Global publications and third party redistributors.