(DCFC), BP plc (NYSE:BP) – This oil giant is teaming up with an electric vehicle charging company
A new partnership between a leading oil company and an electric vehicle charging infrastructure company was announced on Monday. Here are the details of the deal and what it means for diversification in the space.
What happened: Fuel company API BP (NYSE: BP) announced a multi-year contract with Tritium DCFC Limited (NASDAQ: DCFC) Monday.
The deal will see BP supply chargers and related services from Tritium, a developer and manufacturer of DC fast chargers for electric vehicles. The supply will help boost BP’s charging network.
The initial order is for the UK, Australia and New Zealand markets for BP with an initial supply of around 1,000 loaders.
“I am delighted that with this new global agreement with Tritium, it will help bp pulse fulfill its mission to provide fast and reliable charging to electric vehicle drivers and accelerate the deployment of the necessary charging infrastructure as the the world is shifting to decarbonising roads transport”, bp pulse Senior Vice President Richard Bartlett mentioned.
Tritium, which announced a SPAC deal in May 2021 to be made 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 Reaches SPAC Deal: What Investors Need to Know
Why it matters: 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 public charging providers for electric vehicles in the UK.
BP pulse offers over 8,000 public charging stations in the UK and is expanding into new territories. The company offers charging stations for home, business and public use.
“We are delighted to work with bp to create better global access to fast charging as part of their mission to become a net zero company by 2050 and to be a leader in helping the world achieve net zero emissions” , said the CEO of Tritium. Jane Hunter mentioned.
BP’s move follows another oil giant that has ambitious plans to expand its electric vehicle charging division. Shell PLC (NYSE:SHEL) acquired electric vehicle charging and energy management software company Greenlots in 2019.
The acquisition and growth of Greenlots has led Shell to offer electric vehicle charging stations at its existing service stations in some countries. The company aims for 500,000 chargers by 2025 worldwide.
The growth of electric vehicles has been one of the main stories in the automotive market over the past few years and is expected to continue. Major oil companies betting on the growth of the sector through diversification efforts could show the anticipated growth in the size of the electric vehicle market.
The addition of electric vehicle charging stations at gas stations to create a hybrid model of refueling options for traditional automobiles and electric vehicles could become a normal sight in a few years and could be the start of a shift towards a higher market share for electric vehicles. Vehicles.
Price Action: Tritium shares are up 10.80% at $9.44 on Monday. The shares have traded between $6.42 and $19.75 over the past 52 weeks.
Photo: Courtesy of bp.com
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