DCFC stock rocketed more than 50% higher on February 8, 2022, after the company announced it was opening a new US manufacturing facility in Tennessee.
Tritium Announces Location of New US Manufacturing Facility in Tennessee
In an effort to increase sales, localize production and expand electric vehicle charging infrastructure in the United States, Tritium DCFC Limited (Nasdaq: DCFC), a global leader in direct current fast chargers for EVs, has announced plans for expansion of its American footprint with a new manufacturing facility in Lebanon, Tennessee. The location is expected to house up to six production lines for Tritium’s DC fast chargers, including the Company’s award-winning RTM and all-new PKM150 models. The new facility is also anticipated to bring more than 500 jobs to the region over the next five years. All chargers produced at the facility are expected to comply with applicable Buy America Act provisions under Federal Highway Administration (“FHWA”) requirements for domestic sourcing.
The Infrastructure Investment and Jobs Act (“Bipartisan Infrastructure Law”) is expected to provide $7.5 billion of investment for deploying a network of 500,000 EV chargers along highway corridors in the United States. This network is intended to facilitate long-distance travel, as well as shorter distance travel within communities, to provide convenient charging options and encourage the electrification of transportation across the country.
“I welcome Tritium to Tennessee and thank the company for its commitment to create more than 500 new jobs in Wilson County,” said Tennessee Governor Bill Lee. “Our state’s highly-skilled workforce and position as a leader in the EV industry continue to attract companies like Tritium to Tennessee.”
Tritium’s U.S. expansion is part of a global trend bringing convenient and fast EV charging solutions to the masses. Production is expected to start at the Tennessee facility sometime in the third quarter of 2022, and is anticipated to help the Company facilitate distribution of its products throughout the United States, where the Company has recently seen revenue expansion as a proportion of its overall revenue mix, and expand its global impact beyond the more than 3.6 million high-power charging sessions across 41 countries that it has already provided. Based on preliminary revenue figures for the twelve months ended December 31, 2021, the United States and Europe accounted for approximately 43% and 43% of the Company’s revenue, compared to approximately 23% and 68%, respectively, for the twelve months ended June 30, 2021. The Company expects to announce expansion of its European manufacturing capacity, through expansion of existing facilities or establishment of new facilities, in 2023.
“Tritium’s investment in a U.S.-based, cutting-edge facility for manufacturing is part of our strong push toward global growth in support of the e-mobility industry,” said Tritium CEO Jane Hunter. “We are thrilled to work with the U.S. Federal government and the State of Tennessee on this initiative. With the help of the hard-working residents of Tennessee, we expect to double or even triple our charger production capacity to further our product distribution throughout the United States.”
Last month, Tritium announced it had completed its previously announced business combination with Decarbonization Plus Acquisition Corporation II. Tritium’s ordinary shares and warrants commenced trading on the Nasdaq on January 14, 2022, under the ticker symbols “DCFC” and “DCFCW,” respectively.
The Tennessee Department of Economic and Community Development’s mission is to develop strategies that help make Tennessee the No. 1 location in the Southeast for high quality jobs. To grow and strengthen Tennessee, the department seeks to attract new corporate investment to the state and works with Tennessee companies to facilitate expansion and economic growth. For more information, visit tnecd.com.
Founded in 2001, Tritium (Nasdaq: DCFC; DCFCW) 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.
Tritium initiated with an Outperform at Raymond James
On February 1, 2022, Raymond James analyst Pavel Molchanov initiated coverage of Tritium (DCFC) with an Outperform rating and $10 price target. 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 tells investors in a research note. Molchanov believes ADS-TEC Energy (ADSE), Tritium’s closest competitor, offers an even better entry point.
Tritium secures EV fast charger purchasing commitment from Electromin
On January 28, 2022, Tritium DCFC has entered into an agreement with Electromin, a Saudi-owned company and provider of e-mobility solutions across the Middle East and Africa. This agreement comes on the heels of a pledge by the Kingdom of Saudi Arabia to have net zero carbon emissions by 2060 and increase the uptake of electric vehicles. Through the agreement, Electromin plans to purchase 200 of Tritium’s DC fast chargers. As Electromin builds their network, this deal provides them with access to Tritium’s award-winning RTM and newly released PKM150 fast chargers, designed for more cost-effective operations and infrastructure deployment.
📺 EV Charger Maker Tritium Says Demand Outstripping Supply
📈 DCFC Stock Technical Analysis
Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry. The technical rating of DCFC is bad and it also does not present a quality setup at the moment. DCFC stock has a Setup Rating of 1 out of 10. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when DCFC stock consolidates and has a Setup Rating of 8 or higher.