A new partnership between a leading oil company and an electric vehicle charging infrastructure company was announced Monday. Here are the details of the deal and what it means for diversification in the space.
What Happened: Oil company BP PLC (NYSE: LON:BP) announced a multi-year contract with Tritium DCFC Limited (NASDAQ: DCFC) Monday.
The deal will see BP provided with chargers and related services from Tritium, a developer and manufacturer of direct current fast chargers for electric vehicles. The supply will help boost BP’s charging network.
The initial order is for the United Kingdom, Australia and New Zealand markets for BP with an initial supply of around 1,000 chargers.
“I’m delighted that with this new global agreement with Tritium, it will help bp pulse deliver its mission to provide fast, reliable charging for EV drivers and to accelerate the roll-out of the charging infrastructure needed as the world transitions to decarbonise road transport,” bp pulse Senior Vice President Richard Bartlett said.
Tritium, which announced a SPAC deal in May 2021 to go public, is one of the largest electric vehicle charging infrastructure companies and was at the time the only pure-play, DC fast charging manufacturing company with a global sales and support reach.
Related Link: EV Charging Infrastructure Leader Tritium Lands SPAC Deal: What Investors Should Know
Why It’s Important: Well-known as one of the largest oil and gas companies in the world, BP also operates bp pulse, which is one of the largest suppliers of public charging for electric vehicles in the United Kingdom.
BP pulse offers over 8,000 public charging points in the United Kingdom and is expanding to new territories. The company offers charging units for home, business and public use.
“We’re thrilled to be working with bp to create greater global access to fast charging in support of their mission to become a net zero company by 2050 and to be a leader in helping the world get to net zero emissions,” Tritium CEO Jane Hunter said.
The move by BP follows another oil giant that has ambitious plans to grow its electric vehicle charging division. Shell (LON:RDSa) PLC (NYSE: SHEL) acquired EV charging and energy management software company Greenlots in 2019.
The acquisition and growth of Greenlots has led to Shell offering some electric vehicle charging stations at its existing gas stations in certain countries. The company has a target of 500,000 chargers by 2025 globally.
Growth of electric vehicles has been a leading story for the automotive market over the last several years and is likely to continue. Big oil companies betting on growth of the sector through diversification efforts could show the anticipated growth of the market size for electric vehicles.
The addition of electric vehicle charging stations at gas stations to create a hybrid model of refueling options for both traditional automobiles and electric vehicles may become a normal sight in a couple of years and could be the start of a shift to a higher market share for electric vehicles.
Price Action: Tritium shares are up 10.80% to $9.44 on Monday. Shares have traded between $6.42 and $19.75 over the last 52-weeks.
Photo: Courtesy of bp.com
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