SEA Electric pulls out of electric vehicle factory plans

Electric vehicle manufacturer SEA Electric has pulled out of a deal with the Victorian Government to establish a factory in the Latrobe Valley.

After announcing a deal with Victorian Premier Daniel Andrews in the lead up to the 2018 State Election, SEA Electric had planned to build a plant in the region – which would have provided around 500 jobs for local residents.

As reported by the ABC, the Victorian Government announced yesterday SEA Electric had declared its intention to end the agreement – although no details were provided as to how much had been spent or repaid to the company.

3

The announcement is a blow for the Latrobe Valley region which was looking to recover jobs after the Hazelwood coal-fired power station closed in 2017, leading to roughly 750 local residents losing their main source of income.

Earlier this year, SEA Electric announced a US$42 million (AU$52m) uptake in private placement equity financing, having moved its Australian headquarters to the United States and formed partnerships with the likes of FedEx, Staples and UPS.

The privately sourced funding was tipped to help SEA Electric further develop its Sea-Drive 120a battery system, as well as expand into international markets with its business of converting front engine cab, chassis-rigid trucks and delivery vans to run on electricity – with local offerings including Isuzu and Hino vehicles.

3

In Australia, similar vehicles to those converted by SEA Electric are set to be rolled out through the Australia Post fleet, with the national postal service taking delivery of 20 Mitsubishi eCanter trucks for metro areas.

The announcement comes a day after the Federal Government announced its Future Fuels strategy, which has been widely criticised by the automotive industry with experts saying the current target for EVs to make up 30 per cent of new vehicle sales by 2030 is "optimistic" given the lack of incentives.