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Which EV Charging Stocks Are the Best Bets? One Analyst Suggests 2 Names to Consider
By Michael Marcus
Jun 21, 2022
https://www.tipranks.com/news/article/which-ev-charging-stocks-are-the-best-bets-one-analyst-suggests-2-names-to-consider
The Biden administration is pushing hard to promote electric vehicles (EVs). From a $7.5 billion provision in the ‘Build Back Better’ bill to political pressure on automakers to commit to increased production with the goal of converting 40% of car sales to EVs by the end of this decade, it’s clear that under Biden, the government has the will to enforce a major shift in the automotive industry.
The Biden administration has also prioritized the production of EV battery systems, to the tune of $3.1 billion in Federal funding for battery manufacturers. With that support in place, investors may be able to find plenty of opportunity in EV charging stocks.
Against this backdrop, one analyst, Christopher Souther of B. Riley Securities, has picked out 2 stocks in the charging segment with potential for solid gains going forward – gains on the order of 50% or better. We ran the two through TipRanks database to see what other Wall Street’s analysts have to say about them.
Tritium DCFC Limited (DCFC)
Tritium is an Australian firm that’s been in the electric charger business since 2001. The company focuses on DC (direct current) fast chargers, manufacturing both the software and hardware for these advanced EV charging systems. The company has over 6,700 chargers in operation in more than 41 countries. Tritium’s fast chargers are designed to fill a major need in the EV segment by reducing recharge times; the DC fast charger tech can bring most consumer EVs to an 80% charge status in less than 45 minutes.
Tritium has recently announced moves to expand its product footprint. In April of this year, the company entered a multi-year contract with the energy sector giant BP, to provide chargers and support services for BP’s EV charging network. The initial order under this contract includes just under 1,000 charging stations in the UK, Australian, and New Zealand markets.
In May of this year, Tritium followed that up with an announcement that it had contracted to provide 250 chargers to the UK’s Osprey network, a fast-growing player in the British rapid EV chargepoint sector. Tritium’s contribution is expected to increase the Osprey network by more than 50%.
These moves bode well for Tritium, which entered the public markets through a SPAC merger in January of this year. Since going public, however, the stock is down by 42%.
In Souther’s comments on Tritium, he writes of his belief that this company has a leg up in the DC fast charge market segment, given its status as a pure-play actor in the field.
“We believe that Tritium is well positioned with key customers across public network operators, fleets, utilities, and heavy-duty/industrial vehicles, providing strong visibility on revenue growth. New customer wins have been driven by Tritium’s differentiated factors, including its products’ lower cost of ownership, its liquid-cooled technology, and its new modular scalable charging (MSC) platform,” Souther opined.
“As Tritium’s installed fleet grows, we believe revenue from recurring software and service is likely to scale to become meaningfully accretive to margins. We see the company’s hardware sales model as providing better operating leverage than peers with less-focused business models and higher cost structures,” the analyst added.
Along with this upbeat outlook, the analyst sets a Buy rating on Tritium shares, and a $12 price target that indicates confidence in an 89% upside for the coming 12 months. (To watch Souther’s track record, click here)
It’s not often that the analysts all agree on a stock, so when it does happen, take note. Tritium’s Strong Buy consensus rating is based on a unanimous 5 Buys. Tritium shares are priced at $6.34 and their average price target of $14.40 implies an upside potential of ~127%.
Tweet regarding their state-of-the-art testing facility in Australia with link to virtual tour https://t.co/A8FXAyj0ZH
Informative tweet and short video
$DCFC $DCFCW @TritiumUSA @TritiumCharging @funnyG986 ⬅️credit
— RisenFit (@risenfit) February 18, 2022
👉EV CHARGING $BLNK customer $EVGO catalyst watch! $CHPT not a manufacturer/past customer.
👉global competitor: $ABB, US competitor:btcpower
👉Gas stations. @Shell - customer @bp_America - catalyst watch! pic.twitter.com/ZyuLHa725N
Tritium CEO to meet President Biden today following announcement of a new DCFC manufacturing facility in Tennessee:
https://electrek.co/2022/02/08/tritium-ceo-to-meet-president-biden-today-following-announcement-of-a-new-dcfc-manufacturing-facility-in-tennessee/
Biden Looks Towards Future, Says America Is Going To Lead The World On Electric Vehicles
Feb 8, 2022
2 “Strong Buy” EV Charging Stocks Trading Under $10
Michael Marcus, Feb 03, 2022, 09:22 AM
https://www.tipranks.com/news/article/2-strong-buy-ev-charging-stocks-trading-under-10?utm_source=stck.pro&utm_medium=referral
Let’s talk a bit out about EV stocks. Electric vehicles are not a new technology – in fact, they date back almost to the earliest days of the automobile – but today’s materials, batteries, and electronics have brought them into their own, as a more mature technology. It’s clear that EVs are here to stay. What is less obvious is that they are bringing a host of ancillary tech and services with them. Prominent among these are charging companies.
The charging network is the vital infrastructure that will make pure battery-powered EVs fully viable. The political will exists to expand current networks into full national coverage, and an array of companies are moving in to design, build, and install those networks, as well as commercial charging locations and individual stations.
For investors who don’t want to break the bank, and are interested in EVs and EV charging, there are plenty of EV charging stocks available for under $10 per share. We’ve used the TipRanks database to look up a couple of these stocks. They combine that low entry cost with a Strong Buy consensus rating and potential to double in the coming year. Let’s take a closer look.
Volta (VLTA)
The first stock we’re looking at, Volta, ...
Tritium (DCFC)
The second stock on our list is Australia-based Tritium, an EV charger company aiming at the global market. Tritium, which was founded in 2001, manufactures both the hardware and software for DC fast chargers, the charge stations that offer users the shortest recharging times for their EVs. DC fast charging stations are capable of recharging most consumer EVs to 80% in 15 to 45 minutes.
Tritium already boasts that is has 6,700 chargers installed in 41 countries. More importantly, its charging stations are capable of operating in a wide range of temperatures, from -31 F (-35 C) to 122 F (50 C); this is a key point in Tritium’s favor, as ambient temperature is known to affect EV charging times and efficiency.
As 2022 opened, Tritium raised new capital for operations by going public – the company completed a SPAC combination with Decarbonization Plus Acquisition Corporation II on January 13, and the DCFC ticker debuted on Wall Street, on the NASDAQ index, on January 14. The stock closed on its first day of trading at $9.22, and has since fallen by 29%. Tritium realized US$403 million from the SPAC combo, and currently shows a market cap of US$995 million.
In the weeks since the SPAC completion, Tritium continued to move on the expansion of its global footprint. The company on January 28 announce a partnership with Electromin, a Saudi company that provides e-mobility solutions in the Middle East and Africa. The agreement is in the context of the Saudi government’s push to increase the use of electric vehicles.
Initiating coverage of Tritium for Raymond James, 5-star analyst Pavel Molchanov points out key advantages in the company’s technology: “To propel the light-duty electric vehicle adoption curve, more and faster infrastructure is essential. DC fast charging is already commonplace, and ultra fast technology represents the leading edge. Tritium provides these two types of chargers — not the slower, “old school” Level 2. As with all clean tech hardware, some commoditization is inevitable, but the ramp-up of the company’s service and software offerings should give the margin profile a boost.”
Molchanov believes this technological advantage puts Tritium in a solid position going forward, and he gives the stock an Outperform (i.e. Buy) rating. His $10 price target indicates confidence in an upside of ~54% for the year ahead. (To watch Molchanov’s track record, click here)
Wall Street generally is even more bullish than Molchanov on this stock. DCFC gets a Strong Buy consensus rating based on 3 reviews which are unanimous in their positive outlook. The stock is currently trading for $6.50; its average price target of $14.33 implies a robust 120% upside for the year ahead.
NSW opens funding for first of 1,000 ultra fast EV chargers, country’s biggest network
FEBRUARY 2, 2022
https://thedriven.io/2022/02/02/nsw-opens-funding-for-first-of-1000-ultra-fast-ev-chargers-countrys-biggest-network/
The New South Wales government has opened the first, $35 million funding round for what it says will be the country’s most extensive electric vehicle charging network.
The $35 million is part of a $171 million funding program over four years to help roll out 1,000 ultra-fast charging stations across the state, announced last September.
Treasurer Matt Kean, who drives a Tesla Model 3, says the NSW government will fund up to 50 per cent of the capital costs of the charging bays which will be rolled out on key travel routes across the state “so drivers can put range anxiety in the rearview mirror.”
NSW has already introduced the most generous EV rebates in the country, comprising a $3,000 rebate for the first 20,000 EVs priced under $68,750, and a stamp duty exemption for cars priced under $78,000.
The charging component was announced last year as part of its suite of initiatives that aims to reach a 50 per cent share of electric vehicles in new vehicle sales by 2030.
It aims to ensure that households in areas with limited off-street parking live no more than 5 km from an ultra-fast charger in metropolitan areas and no more than 100kms apart in regional areas.
The new funding round is the first of four funding rounds likely to take place over the next three to four years. The funding component can include the renewable energy generation and battery storage for EV charging stations. All charging stations must be powered by renewables, and on site battery storage is encouraged.
“This is expected to unlock around $160 million in private investment under our plan to build the biggest electric vehicle charging network in Australia,” Kean said in a statement.
Construction is expected to start in the second half of 2022, with construction of all charging stations approved in this first round to be completed within two years.
There are likely to be four rounds over the next three to four years to construct at least 1,000 fast and ultra-fast chargers state-wide. Ultra-fast chargers can take as little as 15 minutes to charge up to 400km and each site will be required to provide four charging bays, two of them rated at 350kW and two rates at least 175kW.
Applicants will be limited to $15 million of funding over multiple locations and a maximum of $490,000 per charging station (on average).
The NSW government ssays applications for co-funding will be assessed over two stages. Stage one will assess eligibility and high-level merit criteria, with a more detailed application for charging sites required in the second stage. Applicants will be limited to $15 million of funding over multiple locations.
It’s expected the first stage applications will be finalised in April, with successful bidders and sites for funding to be announced in mid 2022.
Giles Parkinson
Giles Parkinson is founder and editor of The Driven, and also edits and founded the Renew Economy and One Step Off The Grid web sites. He has been a journalist for nearly 40 years, is a former business and deputy editor of the Australian Financial Review, and owns a Tesla Model 3.
Tritium DCFC initiated by Raymond James at outperform. $10.00 PT.
https://www.marketbeat.com/stocks/NASDAQ/DCFC/price-target/
Two new tweets from Tritium posted earlier today https://twitter.com/TritiumCharging
Tritium Could Be Charging The EV Future And I Think It Looks Cheap
Jan. 19, 2022 2:08 PM ET
https://seekingalpha.com/article/4480370-tritium-could-be-charging-the-ev-future-and-i-think-it-looks-cheap
Summary
- Tritium is the world leader in EV DC fast charging technology with around 6,700 chargers sold in 41 countries.
- The market is growing rapidly, and the company expects to be generating sales of over $1.5 billion by 2026.
- Tritium needs just $68 million of funding to achieve positive free cash flow in 2023 and its free cash flow conversion rate is close to 90%.
- The company is trading at just below 3.8x EV/EBITDA estimates for 2026 and I think this multiple should be close to 5x.
Investment thesis
I don’t write often about SPAC deals as most of these newly listed companies seem expensive to me from a fundamentals point of view. However, Tritium (NASDAQ:DCFC) caught my attention due to its low CAPEX requirements and reasonable valuation. The company just completed its listing at a forecast 2026 EV/EBITDA multiple of 4.1x and estimates that it needs just $68 million of funding to achieve positive free cash flow in 2023. I like the technology and the sector, and I think the company has a decent chance of staying an important player in the electric vehicle (EV) charging market. Let’s review.
Overview of the business and financials
The batteries of electric vehicles can store only direct current (DC) power but the power that comes from the grid is always alternating current (AC). Most electronic devices have a converter built into the plug and EVs are no exception – it's something called an onboard charger. The latter converts power from AC to DC and then feeds it into the battery. Most EV chargers today use AC, but there are several companies that specialize in DC chargers, where the converter is located inside the charger itself. DC chargers are usually much faster but they tend to be bulkier which means that hosts lose car parking spaces.
This is where Tritium comes in. The company is widely regarded as the world leader in EV DC fast charging technology with around 6,700 chargers sold in 41 countries as of the time of writing.
Tritium has a first-mover advantage with over nine years on the market as well as an intellectual property moat thanks to the only liquid-cooled, IP65 rated charger technology on the market. It estimates that its sealed enclosure and liquid-cooled technology results in up to 37% total cost of ownership reduction over a decade of operation compared to all its competitors who use air-cooled systems.
In addition to this, Tritium's chargers have a small footprint which means that the number of car parking spaces lost to charging stations for site hosts is significantly reduced compared to its competitors.
Tritium is an Australian company and most of its staff is currently based in Oceania. However, almost all of its sales at the moment come from Europe and North America. I think this makes sense considering China, the EU, and the USA are the three major EV markets today and they are set to keep their importance over the next decade.
Tritium’s revenues and backlog have been growing rapidly despite the effects of the COVID-19 pandemic and the company is expected to report sales of around $84 million for 2021. Looking ahead, Tritium forecasts its revenues could grow to over $1.5 billion by 2026, with a large share of them coming from recurring software and services as the installed fleet grows. The business is also expected to become free cash flow positive in 2023, with the company forecasting that it needs only $68 million in funding before this point. This amount is much lower than the $274 million in cash Tritium should have had when its merger with Decarbonization Plus Acquisition II closed earlier this month.
I’m not too impressed by the expected EBITDA margin but the free cash flow conversion rate looks compelling, and I expect Tritium to have a good dividend or buyback yield in the future if its financial performance matches or exceeds the forecasts. This is where the most significant risk for these SPAC listings lies. Around half of these companies have negative returns one year after the completion of a merger and the most common reason behind this is over-optimistic financial projections.
One of the worst cases I’ve seen includes Colombia-focused cannabis producer Clever Leaves (NASDAQ:CLVR), which I’ve covered here.
Is it likely that Tritium joins the ranks of SPAC companies that have missed their growth targets? Of course, after all its financial performance depends on keeping a leading position in the DC fast charging market as well as the global EV sector growing at a rapid pace over the next several years. I’m not too concerned though as I think Tritium’s liquid-cooled technology should protect its market share from competitors and charger installations should remain high even during years with slow EV sales as the infrastructure needs to be set up before the world transitions to EVs. Even if Tritium runs into problems, those $274 million in the bank should be more than enough to weather through any storm and stock dilution risk thus seems low.
Looking at the valuation, Tritium has an enterprise value of $1.31 billion as of the time of writing, which means it’s trading at just below 3.8x EV/EBITDA estimates for 2026. I think this is low for a company with a free cash flow conversion rate of close to 90% and the multiple should be close to 5x.
Investor takeaway
I view DC fast charging as the future for EVs as it significantly reduces charging time and it's thus likely to improve range anxiety, which is one of the main obstacles for global EV adoption. Tritium is the leader in this space at the moment and I expect it to keep it to successfully defend its market position thanks to the small footprint of its chargers as well as the total cost of ownership advantages offered by its liquid-cooled technology.
Even if the company faces issues in the near future, it should be able to resolve them without stock dilution considering it’s less than two years from becoming free cash flow positive and has an asset-light business model.
Overall, I view Tritium as a speculative buy, and I think it should be valued at around 5x EV/EBITDA estimates for 2026.
Recent tweet
$DCFC
— RisenFit (@risenfit) January 17, 2022
Tritium will provide the hardware and software to help aqua superpower to build their global marine fast charging network.
The partnership has already produced installs along the Cote d A’zur, Italian Riviera ,and in Venice.
150 tritium chargers planned for 2022. pic.twitter.com/AKMNfR44dF
Tritium goes public to expand to three plants globally
Jan 14, 2022
https://www.electrive.com/2022/01/14/tritium-goes-public-to-expand-to-three-plants-globally/
The Australian charging column manufacturer Tritium has launched on the US stock exchange Nasdaq. Tritium plans to invest the capital generated by the IPO in its expansion to three global manufacturing facilities and the development of global sales and service teams.
Tritium has merged with SPAC company Decarbonization Plus Acquisition Corporation (DCRN) for the IPO and will operate as Tritium DCFC Limited. The common stock and warrants will trade on Nasdaq under the ticker symbols “DCFC” and “DCFCW” respectively. Tritium has not disclosed how much capital it expects to raise by going public.
The merger was approved by the shareholders’ meeting of the already listed company DCRN on 12 January and was completed one day later. Going public by merging with an already listed company has become the most utilized method for electric mobility companies to shorten the lengthy IPO process in the US. Since the merger partners were usually founded and listed on the stock exchange precisely for this business purpose of the merger, such shell companies are also referred to as “Special Purpose Acquisition Companies” or SPACs for short.
The merged Tritium DCFC Limited is still headed by Jane Hunter as CEO, the leadership team also includes the two co-founders James Kennedy (Chief Technology Officer) and David Finn (Chief Vision Officer) as well as David Toomey (Chief Strategy Officer) and Michael Hipwood (Chief Financial Officer).
As part of the business combination, Robert Tichio, previously chief executive of DCRN, will join Tritium’s board of directors as chairman. “We are extremely pleased to see the completion of this business combination and to support Jane and the Tritium team as they continue to execute on their strategic growth plan as a public company,” says Tichio.
Tritium currently has manufacturing facilities in Australia and is currently building manufacturing facilities in the USA. Tritium CEO Jane Hunter recently told Bloomberg that Tritium is ramping up speed to get its US manufacturing facility ready by the third quarter of next year because of recent freight delays in both air and shipping freight from their facility in Australia. The company has so far not revealed where its third manufacturing facility will be located.
Tritium offers DC fast chargers exclusively and is best known in Europe as one of Ionity’s three suppliers. This year has been quite eventful for Tritium. The company has had orders coming in from all over the globe, from its home country of Australia to North America and Europe, and this year opened up headquarters in Singapore. Here, Tritium is opening a new regional office that aims to cater to the increase in interest in EVs in Asia-Pacific and the Middle East.
Just last month, the Australian company presented a new fast charger generation, that primarily differs from its predecessors in the way energy is distributed within a charging park. Other developments at the company have included making existing models Plug&Charge-capable. Tritium was the first company to present charging stations that are Plug&Charge capable, launched on the US market in August 2020.
Just last month, the Australian company also won a major contract from Shell in December to supply DC pillars for use in Europe, South Africa, Asia, the Middle East and North America.
Shell Converts Gas Station Into EV Charging Hub
The oil giant already operates a network of nearly 8,000 EV charging points.
Jan 06, 2022, at 7:59am ET, By: EVANNEX
https://insideevs.com/news/559069/shell-gas-station-ev-charging/amp/
European oil companies are getting into the EV charging business in a big way—whether that’s a good thing remains to be seen, but Shell’s new “EV hub” in London certainly looks impressive.
The oil giant, which currently operates a network of nearly 8,000 EV charging points, has converted an existing petrol station in Fulham, central London, to an electric vehicle charging hub that features ten 175 kW DC fast-charging stations, built by Australian manufacturer Tritium. The hub will offer “a comfortable seating area for waiting EV drivers,” along with a Costa Coffee store and a Little Waitrose & Partners shop.
Above: In Fulham, Shell is converting one of its conventional fuel service stations into an electric vehicle charging hub (Source: Shell)
The hub features solar panels on the roof, and Shell says the chargers will be powered by 100% certified renewable electricity. It may be open for business by the time you read this.
Many urban dwellers in the UK, who would otherwise be likely EV buyers, don’t have the option of installing charging at home, as they have no assigned parking spaces, and rely on on-street parking. This is a thorny problem, and it remains to be seen whether “charging hubs” are a viable solution (not having to visit gas stations is generally considered one of the major benefits of EV ownership).
Above: A look at Shell's latest efforts to address the EV crowd (Source: Shell)
Shell launched a similar EV hub in Paris earlier this year. The company is also pursuing other ways to provide charging for the drivewayless masses. It aims to install 50,000 ubitricity on-street charging posts across the UK by 2025, and is collaborating with grocery chain Waitrose in the UK to install 800 charging points at stores by 2025.
Tritium Announces Record-Breaking Fourth Quarter and 2021 Results
Press Release
01/04/2022
https://tritiumcharging.com/tritium-announces-record-breaking-fourth-quarter-and-2021-results/?utm_source=linkedin&utm_medium=social&utm_term=&utm_content=&utm_campaign=q4update-2022
Company reports second half 2021 sales of $98 million, an increase of 416% year over year; record contracted backlog at year end, representing over 48% of the Company’s 2022 revenue target; and issues formal revenue guidance of $170 million for 2022, consistent with prior forecast.
Tritium announces it is in the final stages of site selection for its new U.S. factory; the Company expects an announcement in the first quarter of 2022 with production expected to start in third quarter 2022.
BRISBANE, Australia, January 4, 2022 – Tritium Holdings Pty Ltd (“Tritium” or the “Company”), a global developer and manufacturer of direct current (“DC”) fast chargers for electric vehicles (“EVs”), today announced record sales, backlog and revenue results for and as of the year ended December 31, 2021, and provided a business update. Except as otherwise indicated or unless the context otherwise requires, all financial figures are in U.S. dollars and references herein to “quarter,” “year,” “2020,” “2021” or “2022” are to the relevant calendar period.
For the three months ended December 31, 2021, Tritium booked revenue of approximately $41 million, equivalent to a last quarter annualized (LQA) run-rate of $164 million, and set a new quarterly record. The Company more than doubled its Q3 2021 revenue, the next largest quarterly revenue in its 19-year operating history, and achieved more than 2.5x revenue compared to the fourth quarter of 2020.
For 2021, revenue was approximately $78 million, which is only slightly lower than the previous forecast of $84 million, due in large part to logistics and supply chain challenges, including delays at the ports of Long Beach and Los Angeles, which delayed certain product deliveries at year end. Tritium expects to record those revenues as products are received by customers in the first quarter of 2022. As reported by CNBC, the twin ports of Long Beach and Los Angeles account for 40% of sea freight entering the United States, and the back-up escalated throughout the year. Tritium has begun to see supply chain constraints ease, with these ports reporting a 33% decline in lingering cargo containers in December 2021 compared to November 2021. The Company expects 2021 EBITDA and Free Cash Flow to be approximately $(39) million and $(43) million, respectively.
Underscoring the record demand for Tritium’s products, sales for 2021 were $141 million, which represents more than a 136% increase over 2020 sales of $60 million. The Company’s sales grew significantly in the second half of 2021 to $98 million, an increase of 416% compared to the second half result of $19 million the previous year.
Tritium believes that this growth in sales substantiates its thesis that DC fast charging infrastructure is rolling out at an accelerating pace to support the rapid shift towards electric vehicles globally. Tritium enters 2022 with the largest year-opening order book in its history. Tritium’s backlog continued to grow throughout 2021, ending at approximately $82 million, an increase of approximately 316% since year end 2020. This backlog is expected to be completely delivered in 2022, and is now expected to account for over 48% of Tritium’s 2022 revenue guidance, or approximately 5 months of forward production capacity at current production levels. Tritium continues to be engaged in a number of additional and potentially high-impact orders under several of its recently announced commercial partnerships and tender wins, and is expanding production capacity to fulfill growing demand in the United States and Europe.
Other recent business highlights include:
- Won a Shell global EV charging tender to provide fast charging technology and services to the world’s largest mobility retailer with over 46,000 retail sites. This agreement is expected to help accelerate the supply of Tritium DC fast chargers to their business operations in Europe, South Africa, Asia, the Middle East and North America, in pursuit of Shell’s ambition to operate 500,000 charge points by 2025 and 2,500,000 by 2030.
- Refinanced $90 million of debt out to 2024, giving Tritium more cash following the listing on the Nasdaq to invest in its business to maintain and increase growth in line with the Company’s customers’ rollout plans, conditional on closing of the business combination.
- Unveiled the PKM, a groundbreaking line of EV fast chargers designed for more cost-effective operations and infrastructure deployment. The PKM150 is the first charger in the PKM line and the first charger that utilizes Tritium’s shared power system, designed to reduce customers’ capital investment while maintaining high charger availability and power output to EVs. Like Tritium’s successful predecessor product launches, the PKM system was developed in response to customer demand pull for its features.
- Opened a world-class EV charger testing facility, featuring one of the highest power commercially accessible electromagnetic compatibility (“EMC”) testing chambers in the world, with thermal testing capable of producing temperatures ranging from -70°C (-94°F) to +180°C (+356°F), and more to accelerate the time-to-market for new products.
- Tritium is in advanced stages of site selection for its new U.S. factory, expected to increase the Company’s global production capacity up threefold in 2022. Two states – Texas and Tennessee – are the finalists in this process, and the Company expects an announcement in the first quarter of 2022 as engagement with private and public sector representatives related to this process nears conclusion.
- As of December 31, 2021, Tritium had sold more than 6,700 DC fast chargers around the world, compared to the more than 4,400 DC fast chargers sold as of May 26, 2021, the time of the announcement of the business combination.
Business Combination Update
The special meeting of stockholders of Decarbonization Plus Acquisition Corporation II (NASDAQ: DCRN, DCRNW, DCRNU) (“DCRN”) to approve the proposed business combination with Tritium, among other related matters, is scheduled to be held on Wednesday, January 12, 2022 at 10:00am Eastern time.
Credit Suisse Securities (USA) LLC (“Credit Suisse”) is acting as the exclusive financial advisor to a consortium of certain Tritium shareholders in connection with the business combination between Tritium and DCRN. DCRN engaged Credit Suisse as its lead placement agent and Citi Global Markets (“Citi”) and J.P. Morgan Securities LLC (“JPMorgan”) as placement agents for its PIPE Financing (as defined below). Raymond James & Associates, Inc. (“Raymond James”) is acting as Capital Markets Advisor for DCRN. Citi and JPMorgan are acting as financial advisors to DCRN.
The board of directors of DCRN has unanimously recommended stockholders vote in favor of the proposed business combination, which values Tritium at approximately $1.2 billion. As of market close on Monday, January 3, 2022, based on publicly available information as illustrated in the table below, Tritium continues to be valued at a significant discount to the publicly traded, pure-play EV charging peers.
Source: Company investor presentations and FactSet as of 1/3/2022.
Note: For consistency, 2021 data for all companies included in the above graphic, including Tritium, is based on estimates published by each respective company and has not been updated for actual 2021 results where available.
Tritium believes that its target customers are in the midst of an aggressive and historic build cycle. Unlike many of the alternative investment opportunities in the EV charging category, Tritium’s cash flow profile benefits from revenue realization at the time of sale, paired with associated service and recurring software revenue in the future. In an environment of rising interest rates, Tritium believes this business model will resonate with public equity investors seeking exposure to manufacturers, producers and suppliers to the EV thematic.
Fast chargers are emerging as an essential tool to address range anxiety while also providing drivers with a recharging experience that is most analogous to their refueling experience. Tritium believes its technology-advantaged hardware alongside its growing commitment to the services and software offerings presents a compelling value for charge point operators; forecourt fuel, gas and petrol stations; and retail, restaurant and residential complexes looking to install DC fast chargers. Contribution from those critical categories continued to expand in 2021, and Tritium expects the positive impact from the charging infrastructure and hardware buildout to become increasingly evident in 2023 and 2024 financial results. This strategy is consistent with Tritium’s strategy and customer-serving thesis, and the deepening of the Company’s existing relationships with partners such as Shell and Ionity, in addition to new relationships with partners such as Osprey and Aqua superPower, is validating the position Tritium enjoys in performance, reliability, visual display and modularity relative to competitor offerings.
The Company expects to furnish its consolidated financial statements as of and for the six months ended December 31, 2021 in future filings by Tritium DCFC Limited (“NewCo”) with the U.S. Securities and Exchange Commission (the “SEC”) assuming consummation of the business combination. Figures originally reported in Australian dollars were translated into U.S. dollars for the purposes of this press release using the average AUD/USD foreign exchange rates for historical periods.
About Tritium
Founded in 2001, Tritium designs and manufactures proprietary hardware and software to create advanced and reliable DC fast chargers for electric vehicles. Tritium’s compact and robust chargers are designed to look great on Main Street and thrive in harsh conditions, through technology engineered to be easy to install, own, and use. Tritium is focused on continuous innovation in support of our customers around the world.
As announced on May 26, 2021, Tritium has entered into a definitive agreement for a business combination with Decarbonization Plus Acquisition Corporation II (NASDAQ: DCRN, DCRNW, DCRNU), a publicly traded special purpose acquisition company (SPAC), that would result in NewCo becoming publicly listed. Completion of the proposed transaction is subject to customary closing conditions, including approval of DCRN’s stockholders, and is currently expected to occur in January 2022.
About Decarbonization Plus Acquisition Corporation II
Decarbonization Plus Acquisition Corporation II is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with a target whose principal effort is developing and advancing a platform that decarbonizes the most carbon-intensive sectors. These include the energy and agriculture, industrials, transportation and commercial and residential sectors. DCRN is sponsored by an affiliate of Riverstone Holdings LLC and represents a further expansion of Riverstone’s 15-year franchise in low-carbon investments, having established industry leading, scaled companies with more than US$6 billion of equity invested in renewables.
Aqua superPower and Tritium Announce Strategic Partnership to Power Electric Boats
on December 22, 2021
https://www.otcdynamics.com/dcrn-aqua-superpower-and-tritium-announce-strategic-partnership-to-power-electric-boats/
The first marine fast charging network operator, Aqua superPower (“Aqua”), and Tritium Holdings Pty Ltd (“Tritium” or the “Company”), a leading global developer and manufacturer of direct current (“DC”) fast charging technology for electric vehicles (“EVs”), today announced a strategic partnership to electrify transportation on global waterways. Aqua superpower has been rolling out its network of marine fast chargers, with recent installations along the Cote d’Azur and the Italian Riviera, another in Venice, and a further 150 chargers planned next year, with substantial deployment growth to come thereafter.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20211222005085/en/
As the demand for marine charging infrastructure grows, Aqua is collaborating with Tritium, a global leader in DC fast charging hardware and software, to deliver the first global marine-specialised fast charging network. (Photo: Business Wire)
As the electric mobility revolution continues to take hold on the roads and in the skies, the shift towards electrification is also gathering pace across the marine world. Aqua superpower supports marinas, boat builders and boat owners in the drive to bring electric power to the water and reduce the impact of boating on marine ecosystems. As the demand for marine charging infrastructure grows, Aqua is collaborating with Tritium, a global leader in DC fast charging hardware and software, to deliver the first global marine-specialised fast charging network.
“We elected to work with Tritium for their forward-thinking technology, cutting-edge hardware architecture, and operational cost benefits,” said Aqua superPower’s CEO, Alex Bamberg. “The requirement for a joined-up network of reliable and fast marine chargers to create charging hubs and corridors for electric boat users is absolutely crucial if we are to secure the transition away from liquid carbon fuels. The fully sealed design of Tritium’s DC fast chargers and clarity of the user interface inherently provide the robustness and ease of use needed in the marine and freshwater environment.”
The charging speed provided by DC fast chargers is critical to the growth prospects of the e-boat industry. Aqua’s strategy is to supply reliable, high-speed charging to commercial and recreational marine craft users internationally.
Tritium’s IP65-rated technology provides the fully sealed, safe, and reliable charge that e-boat drivers need. The company’s RTM fast charger model was an ideal solution for Aqua with its twin CCS ports and simultaneous charging capability, enabling boat owners to spend less time charging. This is of particular advantage to commercial and working boat owners and operators, as the more frequent duty cycles made possible by the chargers make e-boat technology both more efficient and more beneficial for the environments in which it is used.
“The existing high-profile installations in Monaco, Portofino and Venice, together with other planned Aqua superPower and Tritium projects around the world, will support the electrification of marine transportation going forward. In the same way that passenger vehicles have reached the tipping point, the future for boating is an electrified fleet,” said Tritium’s CEO, Jane Hunter. “The Aqua team comes with experience in creating fast charging networks. We are delighted to work with them as a marine channel partner and provide the technology to help them pursue their goal for a dedicated marine fast charge network.”
Tritium’s robust, sealed-against-the-elements hardware combines seamlessly with Aqua superPower’s network and user management technology. The marine e-mobility ecosystem requires an easy and reliable user interface providing clear guidance to recharging points if adoption is to become widespread.
Aqua superPower’s network is accessible to marine users via the Aqua secure app, RFID card and contactless payment, with ‘Plug and Charge’ technology expected to be available in the future. The app will enable users to view a map showing charger options and offer navigational aids to guide them to their chosen location.
Aqua's adoption of Tritium’s technology will promote its mission to reduce the impact of boating on the marine environment by developing an all-electric and integrated global ecosystem of marine fast chargers. The collaboration will expand clean commercial water transport beyond luxury yachts, to ferries, shuttles, and watercraft used for everything from laundry and food delivery to fishing and passenger transport.
About Tritium
Founded in 2001, Tritium designs and manufactures proprietary hardware and software to create advanced and reliable DC fast chargers for electric vehicles. Tritium’s compact and robust chargers are designed to look great on Main Street and thrive in harsh conditions, through technology engineered to be easy to install, own, and use. Tritium is focused on continuous innovation in support of our customers around the world.
As announced on May 26, 2021, Tritium has entered into a definitive agreement for a business combination with Decarbonization Plus Acquisition Corporation II (NASDAQ: DCRN, DCRNW, DCRNU) (“DCRN”), a publicly traded special purpose acquisition company (SPAC), that would result in Tritium DCFC Limited (“NewCo”), which will be the going-forward company, becoming publicly listed. Completion of the proposed transaction is subject to customary closing conditions, including approval of DCRN’s stockholders, and is expected to occur in January 2022.
For more information, visit tritiumcharging.com.
About Aqua superPower
Aqua superPower is the first fully marinised dockside network of fast chargers for electric boats. Each station provides AC and DC charging with a current maximum power output of 150 kW, allowing DC compatible powerboats to rapidly recharge and extend their autonomy. Aqua has developed the first supercharger specifically engineered and rated for use in marine environments. Built to IP65 standards and constructed using Hydro CIRCAL recycled aluminium, Aqua superPower is a revolutionary and environmentally conscious marine charging solution.
Aqua superPower is the first fast charge network company awarded a grant under the Clean Maritime Demonstration Competition, funded by the UK Department for Transport, and delivered with Innovate UK. Led by the University of Plymouth with Plymouth City Council, Princess Yachts Limited and Aqua SuperPower as Technology Partner, Plymouth’s Marine e-Charging Living Lab (MeLL) will host the UK’s first charging network for electric maritime vessels. Aqua superPower’s marine fast charge technology and the MeLL project were show cased at COP26 Glasgow.
The global electric boat market is expected to be worth over $20 billion by 2027. There are currently over 30 million recreational boats in the world. According to Aqua superPower, assuming the boat market continues to grow in line with historical trends, it is likely there will be more than 1 million electric boats by 2030. Regulation will accelerate this trend. More and more areas will only be accessible to electric boats.
Source: IDTechEx, Electric Boats and Ships 2017-2027; Aqua estimates
For more information visit: www.aqua-superpower.com
About Decarbonization Plus Acquisition Corporation II
Decarbonization Plus Acquisition Corporation II is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with a target whose principal effort is developing and advancing a platform that decarbonizes the most carbon-intensive sectors. These include the energy and agriculture, industrials, transportation and commercial and residential sectors. DCRN is sponsored by an affiliate of Riverstone Holdings LLC and represents a further expansion of Riverstone’s 15-year franchise in low-carbon investments, having established industry leading, scaled companies with more than US$5 billion of equity invested in renewables.
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