Tritium has announced it’s stopping production of direct current (DC) fast-chargers for electric vehicles (EVs) at its plant in Brisbane, Queensland as part of plan to become profitable in 2024.
The Australian-based company will consolidate all its manufacturing operations into its plant in Lebanon, Tennessee.
As reported by The Australian Financial Review, almost 200 workers will lose their jobs as a result of the Brisbane production plant closing.
Tritium has confirmed however it will retain and grow its “more than 200-person” research and development (R&D) team and “world-class” test facility that’s also in Brisbane.
The Australian Financial Review reports Tritium had failed to secure a $90 million investment from the Queensland government.
The company is now trying to avoid getting kicked off the Nasdaq stock exchange which happens after the company trades for 30 consecutive business days below US$1 (A$1.57).
As it currently stands, Tritium is trading at US$0.24 ($0.38), which is down from a high of US$10.30 during November 2021.
“While we continue to build on our recently reported financial results, which include achieving record revenue and gross margin, strategic restructuring of our business is necessary to drive both profitability and shareholder value,” said Tritium CEO Jane Hunter.
“This transition is aligned with the company’s plan to be profitable in 2024.
“The implementation of this plan, including the closure of the Brisbane factory and consolidating our manufacturing operations in Tennessee, supports the ongoing market competitiveness and positioning of the company as a world leader in its category … while bringing our manufacturing operations closer to our largest markets.
“These changes reduce our capital requirements and hasten the timing of the company becoming EBITDA positive.”
As reported by The Australian Financial Review, Tritium’s decision to cease Australian production has meant key investor and billionaire mining executive Brian Flannery has stopped investing in the company.
Earlier this year Tritium inked a deal with fuel giant BP to supply a mix of 50kW and 150kW EV chargers to its BP Pulse public charging networks across Australia, the United States, the United Kingdom, and Europe.
It’s unclear if the fact Australian production is ceasing will impact the roll out of these EV chargers.