• Carbon Revolution Ltd (ASX: CBR), which makes carbon fiber wheels, will list in the U.S. by combining with Twin Ridge Capital Acquisition Corp. (NYSE: TRCA)

• Recently secured $110 million in equity funding from Orion Infrastructure Capital to fuel growth

• Strengthened board with 4 senior U.S. automotive executives, including former GM Vice Chairman Bob Lutz

• Demand for co’s lightweight wheels, particularly in EV market, seen in $680 million backlog, boosting position in EV industry

• Lightweight wheels enhance EV efficiency, assist automakers in meeting fuel economy standards

By Jarrett Banks

The global electric vehicle market is red hot. But the quest to make vehicles lighter and more efficient because of heavy batteries is still in its infancy.

Meet Carbon Revolution Ltd. (ASX: CBR), a global manufacturer of advanced carbon fiber wheels that are capturing the accelerating demand as the global automotive industry shifts rapidly to electrification.

The company recently secured a structured equity facility of up to $110 million from Orion Infrastructure Capital (OIC) as part of its growth strategy. The capital partnership complements Carbon Revolution’s pending SPAC merger with Twin Ridge Capital Acquisition Corp., which is expected to result in up to $230 million in available capital, including asset-backed financing and a committed equity facility.

Under the agreement, Carbon Revolution will issue Class A Preferred Shares and a warrant to OIC, allowing it to hold up to 19.99% of the company upon the closing of the business combination.

The company is experiencing strong demand for its carbon fiber wheels, particularly in the electric vehicle (EV) market, with a backlog of $680 million, a significant portion of which is related to EV programs. Their lightweight wheels contribute to EV efficiency and help automakers meet fuel economy targets.

The company’s growth strategy encompasses several key initiatives. First, they aim to boost sales from programs that are currently in production. Simultaneously, they are actively progressing the development activities of programs they have been awarded.

Efficiency is a priority, and the utilization of the Mega-line for wheel production is a significant part of their strategy to achieve this. They plan to continue capitalizing on the sales momentum generated by programs such as Corvette 706 and Range Rover Sport SV. Additionally, they are focused on ramping up production for the Ford Mustang Dark Horse program.

The company is also working on the development and launch of seven programs that have been awarded but are still in the development phase. What’s more, they’re in the process of completing the commissioning of the current phase of the Mega-line and intend to continue increasing production through this line to drive efficiencies and contribute to profit growth.