TeraWatt lines up $1b to expand its EV charging push

September 14, 2022 at 08:52 AM EDT

The company plans to use proceeds to build out its portfolio of assets focused on fleet electrification.

Charging provider TeraWatt Infrastructure said it lined up more than $1 billion of institutional capital to support the buildout of its fleet-focused electric vehicle charging operations.

Funds managed by Vision Ridge Partners invested alongside existing investors Keyframe Capital and Cyrus Capital, both of which increased their commitments.

Launched in May 2021, TeraWatt focuses on transportation electrification. Its business model combines an EV charging property portfolio, asset financing, project development, and charging and energy management.

The business model includes acquiring properties in places that are relevant to fleets, and develops the energy and charging infrastructure necessary to operate at scale. TeraWatt’s Charging Centers provide reservable space for charging as well as high-power charging levels at locations for commercial electric vehicle fleets.

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In June, TeraWatt said it would work with mobility company Kaptyn to develop electric vehicle charging hubs in Las Vegas, Southern California, and South Florida, among other markets.

Under terms of the deal, TeraWatt would develop and own more 15 MW of charging capacity at sites across Kaptyn’s first three geographies and expand capacity over time. Kapyn said at the time that rideshare drivers travel about three times as many miles per day on average than private car owners, yet less than 1% of rideshare miles are driven in an electric vehicle. Its business model is to acquire and electrify fleets.

Work to launch TeraWatt began in 2018, when its founders decided that demand for fleet charging hubs would rapidly outpace supply. Benjamin Birnbaum, partner at Keyframe Capital and one of TeraWatt’s founders, said in a statement that the company’s work to date “barely scratches the surface” as global investments in electric vehicle charging could near $1 trillion by 2040.

Vision Ridge Partners is a sustainable real assets investor founded by Reuben Munger and joined by partners Justin Goerke and George Polk. It manages $2.6 billion and has offices in Colorado and New York.

Keyframe is a New York-based investment advisor that manages around $1 billion. And Cyrus Capital Partners has offices in New York and London and was founded by Stephen C. Freidheim in 1999.

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TeraWatt lines up $1b to expand its EV charging push