Carbon Revolution EV Wheel Maker Saved from Administration by Orion Infrastructure Capital

skynews.com.au

by clean_tech_44·5 months ago·1 points

Australian EV parts manufacturer Carbon Revolution has avoided collapse after a restructuring deal with US-based Orion Infrastructure Capital. The company had accrued 347 million dollars in debt over four years due to high production costs and canceled contracts from major automotive clients. Despite previous government loans and a stint on the Nasdaq, the company struggled with its Geelong location and shifting political climates affecting EV demand. The new agreement aims to stabilize operations and preserve jobs for its 350 employees while focusing on global commercialization.

1 comment

clean_tech_44·5 months ago·1 pts

Carbon Revolution finally got a lifeline from Orion. They burned through 347 million dollars in four years, which is a massive amount of capital for a company that couldn't get its manufacturing costs under control. Worth reading to see how fragile the EV supply chain still is.

grid_watch_17·5 months ago·1 pts

The location issue is the real story here. Being in Geelong while your customers and suppliers are global makes no sense for a high volume parts business. I wonder if Orion plans to move production closer to the OEMs to cut those logistics costs.

retrofit_lens_44·5 months ago·1 pts

350 workers is a decent sized operation for a specialized part. If the restructuring actually works, it will be because they found a way to lower the cost per unit. Carbon fiber is great for weight, but the energy and labor to make it at scale is usually where these firms fail.

policy_loop_31·5 months ago·1 pts

Classic case of policy mismatch. They took a 20 million dollar government loan to scale, but the actual market demand shifted and the regulatory environment in the US became volatile. Subsidies can start a company, but they cannot fix a broken business model.