US healthcare giant tips $45m in Aussie EV charging company Tritium

Australian electric vehicle charging infrastructure company Tritium has secured a $45 million investment from US healthcare giant Cigna Corporation, that will accelerate the company’s expansion into the United States.

Its one of the largest private investments in Australian electric vehicle technologies, and the investment in Brisbane-based Tritium is an enormous vote of confidence for Australia’s emerging electric vehicle capabilities, especially in a period a tough economic environment.

“We are very proud that, despite the deal being negotiated through the worst volatility of the COVID-19 crisis, Cigna recognised the immense value in Tritium’s differentiated technology and global market position, underpinned by exponential sales growth for the last five years,” Tritium head of corporate development David Toomey said.

“Raising a significant amount of debt for a growth company in the midst of a pandemic was extremely challenging, with the transaction being given a low chance of success.”

“It’s a testament to the team and Tritium’s DNA that the company has developed the business fundamentals required to now become a credit-worthy organisation attracting international debt investors,” Toomey added.

The investment has been made by Cigna Investments, the investment wing of healthcare company Cigna Corporation, which has sought out opportunities to gain exposure in environmentally sustainable sectors, that complement its portfolio of healthcare and health insurance businesses.

The investment will be used to refinance an Australian government loan provided to Tritium under Export Finance Australia, and will be put towards expanding Tritium’s production capacity, and expand the company’s reach into the United States and European markets.

Based out of Brisbane, Tritium has emerged as a leading global manufacturer of electric vehicle charging infrastructure, including its Veefil rapid charging stations. Tritium has since established a formal presence in both California, as well as Amsterdam, to support international growth.

Tritium has sold more than 4,500 charging stations that have been installed across 33 countries, and estimates that it represents as much as one-fifth of the global market for DC charging stations.

Tritium CEO Jane Hunter said the investment from Cigna Corporation would be key to expanding the company’s reach, following substantial growth in the company’s back log of orders, with fuel and energy utilities companies driving an expansion of electric vehicle charging infrastructure in the United States.

“This is a welcome capital injection as the company continues to grow operations and invests in new product development and global marketing. There are some exciting deals and product launches ahead for Tritium, and we have an incredibly dedicated team helping to grow this Australian manufacturing success story,” Jane Hunter said.

“The recent orders are on the back of more traditional sectors such as fuel retail, automotive and utilities joining the rollout of EV charging infrastructure and the general acceleration of electric vehicle uptake in Europe and the US.”

Tritium has emerged as a leading provider of electric charging infrastructure in high growth markets, including California and Norway, and estimates that it has supplies around half of the large Norwegian market for electric vehicle fast chargers.

Last month, Tritium chargers were used in the completion of the largest DC rapid-charging site in the United States, with 20 Tritium 50kW fast chargers installed at the Marengo Charging Plaza in Pasadena, California.

Tritium charges have also been widely used across several wide-scale charging networks being established across Australia, including networks managed by Chargefox, the NRMA and RACQ.

The investment deal – in the form of a private placement of debt – was facilitated by the Commonwealth Bank, which saw Tritium as a strong player in a promising emerging industry.

“Tritium is a company founded on Australian R&D. It is at the forefront of electric vehicle charger technology and we were pleased to worked side-by-side with the team to deliver a financing that supports their global revenue strategy and mission to support cleaner, healthier and more convenient cities,” Commonwealth Bank’s global capital markets executive director Mark Wang said.