Electric vehicle fast-charging company Tritium announced plans to close its Brisbane factory and consolidate operations in the United States to improve profitability. This decision comes after the company reported substantial financial losses and aims to reduce general and administrative expenses. CEO Jane Hunter stated that the move was necessary to maintain the company’s competitiveness and position it as a world leader in its category.
Despite recent financial milestones and success in scaling up their U.S. plant, Tritium sought financial aid from the Queensland government to keep the Australian manufacturing capability. However, the company did not receive a response to its requests. The eventual closure of the Brisbane factory has been viewed as inevitable by some stakeholders and the government, potentially rendering Tritium’s expansion strategy a failure.
The company, known for being one of the world’s largest manufacturers of fast chargers, has experienced difficulties since being listed on the NASDAQ stock exchange in 2021. Despite recording impressive revenue figures, Tritium suffered from negative gross margins. Shareholder Brian Flannery argued the company should have moved its operations to the U.S. sooner and closed its Australian factory, a point supported by Federal Industry Minister Ed Husic.
Tritium has made significant efforts to achieve profitability, yet it is facing strong headwinds in the fast-charging sector. Despite discussions with all levels of government, the company’s request for financial aid has not been met. Given the financial losses and failure to secure investments, the decision to close the Brisbane factory and consolidate operations may very well be Tritium’s last resort.