SEA Electric founder Tony Fairweather believes more can be done to support Australia’s innovative businesses.
You could be forgiven for thinking that a sense of environmentalism would be the driving factor for a business looking to enter the electric vehicle market. In the case of SEA Electric founder Tony Fairweather, it was the economic case that convinced him to pull the trigger on electric vehicle company SEA Electric back in 2017.
Having spent four years in product testing and development, Fairweather launched commercial operations in 2017 when the cost of lithium batteries dropped below US$300 per kilowatt/hour, making the assembly and electrification of commercial vehicles a financially attractive possibility. SEA Electric now counts Woolworths and DHL among its clients, promises a four-year ROI on electrified commercial vehicles over diesel counterparts and plans on launching in the US over the following months.
Fairweather managed to initially self-fund SEA Electric, primarily through his existing business, which covered early funding and initial development, before seeking additional funding through equity investors. It was a logical decision for the company, but one also motivated by the lack of feasible mainstream funding options.
“We didn’t even consider it”
Despite his business experience, Fairweather knew the likelihood of getting traditional finance would be difficult and bring with it additional problems. “We understand traditional Australian financial institutions, and know they’re very risk adverse and prefer funding successful companies with long trading histories as opposed to start-ups and new technologies. To be honest, in the early stages we didn’t even consider it because we knew it would be complex, and if we were able to get funding from a bank it would be expensive,” he told Finder.
It’s a familiar story for those working in the tech or emerging industry sector, whose promising ideas are often hindered by a lack of funding at crucial stages of development. While initiatives such as the Westpac Emerging Industries division are looking to help innovative businesses grow, Fairweather believes the lack of financial support comes at an economic cost for the Australian tech industry.
“Australian financial institutions like to support companies that are already successful and have long, successful trading histories. So there is a very big gap in the Australian market for low-cost and efficient funding of technology companies, or any new companies in new industries, that are trying to develop before commercialising. We had to do this ourselves, with the exception of the recent support from Westpac,” he said.
“We still had to be at a certain point of commercialisation, which begs the question of how many fantastic opportunities out there are not coming to realisation because Australian financial institutions don’t have the ability to support them.”
Getting the timing right
While SEA Electric didn’t pursue traditional business finance, Fairweather understands the role it can play in supporting established businesses, but says the key to any business owner seeking funding is to map out when and where you’ll need finance.
“From very early on, understand at what stages you require funding, and understand what kind of funding you will need at those various stages. Don’t rely on early debt funding. That can be more easily attained once you’ve got a trading history, a pipeline and profitability. That’s the stage where low cost bank funding and traditional finance can come into play. Early on you need to be realistic about where you can achieve and obtain funding,” he said.
While funding avenues will open up as the business develops, Fairweather says the lack of support for emerging businesses means it’s likely you’ll have to go it alone initially. “The friends and family element of getting a start-up to commercialisation is absolutely true, particularly in Australia. You need to be able to self-fund for a period of time to be able to prove the business, products, services and the model before having the ability to raise low cost traditional financing.”
The economics of electrification
“What is clear is the electric vehicle revolution upon us is driven by cost, interestingly, and not by the environmental benefit which is 100% cream on top and fantastic, but people will only buy electric vehicles if they see the economics being right. Some people might buy them in passenger cars as a premium because of the environmental element, but you won’t get the scale until the economics are right,” says Fairweather.
The dropping cost of lithium batteries has accelerated the industry beyond early predictions, according to Fairweather. “Those costs have come down so rapidly and on a much great trajectory than anyone anticipated over the last 4-5 years, which is why this electric vehicle revolution is happening now and not in 2023 or 2025.” With a third of Australians already indicating they would consider buying an electric vehicle, according to Roy Morgan, it’s likely this figure will continue to rise as electric vehicles become cheaper, and Fairweather is confident the future is bright for the industry.
“We see it as being enormous. That’s not us being bullish because we’re in the space, it’s because we understand this segment. The electric vehicle industry is unique.” READ MORE

Article by Thomas Stelzer, Author, finder.com.au, 27 February 2019

Australian automotive tech company, SEA Electric, this week announced it will launch its brand in the United States – with two display trucks.

The vehicles are based on popular Ford and Isuzu platforms as part of a showcase at the Work Truck Show in Indianapolis next month.

In April the trucks, which are at an advanced build stage, will also appear at the Advanced Clean Transportation Expo.

The Ford F-59 ‘Stripped Chassis’ is being built at Ford’s DCP assembly facility in Detroit while the Isuzu NRR is being assembled nearby at a third-party plant.

As part of its expansion the company has established a site in Los Angeles where it has recently appointed its first US-based employees to oversee the newest products and future projects through US certification and distribution.

Establishing a foothold in the United States is a logical first step forward for the company according to SEA Electric Group Managing Director, Tony Fairweather.

“We see a lot of opportunities in the States, it’s an extremely large commercial vehicle market with a strong interest in sustainability – the US is an important part of our growth plans,” he said.

“The country’s high urbanisation and sprawling cities also provide conditions where EV can deliver operators a lot of efficiency gains, not to mention the obvious environmental benefits,” said Fairweather.

The Ford F-59 Stripped Chassis is powered by the SEA-Drive 120b power-system which produces 150kW of continuous power and 250kW of maximum power.

In addition to this the vehicle delivers continuous torque of 1230Nm and a maximum torque figure of 2500Nm SEA Electric said in a statement.

The Pantech-bodied Isuzu NRR also features the SEA-Drive 120b power-system.

With operating ranges of up to 350 kilometres, both vehicles according to SEA Electric remove ‘range angst’ for operators.

Shortly following the Work Truck Show, both vehicles will enter in-service trials with major US fleets.

SEA Electric also has a Ford Transit van program underway which will enter a trial stage in April.

This van features the SEA Drive 70 power-system which provides continuous power of 75kW, maximum power of 134kW and 700Nm of maximum torque for an operating range of up to 350km also (220 miles).

Batteries for all three vehicles can be fully charged overnight in 4-6 hours using a 20kW on-board charger.

This allows them to be plugged-in and charged from any three-phase power source.

Fairweather said that the SEA-Drive powered vehicles were ideal for urban and metropolitan back-to-base distribution applications.

“For back-to-base operations EV technology is extremely attractive because at the end of the working day, these vehicles are conveniently charged overnight and ready to go again the next morning,” he said.

“Operators can expect a payback period of less than four years on their SEA-Drive™ powered truck or van, so with a battery lifecycle of approximately 10 years, there are great efficiencies to be gained over the whole life of the vehicle.”

The company confirmed the US venture builds on its Australian operations, which has seen it become the EV technology supplier of choice for the domestic market.

SEA Electric is also well advanced in expanding its local assembly presence in the Latrobe Valley, in southeast Victoria, where it plans on providing capacity to produce up to 2,400 CBU (completely built up) van, light commuter bus and truck units per annum. READ MORE 

Australian electric vehicle technology company SEA Electric is set to launch commercial vehicles in the United States.

It is showcasing two trucks at the Indianapolis Work Truck Show in March and California’s Advanced Clean Transportation Expo in April.

The display vehicles are based on popular Ford and Isuzu platforms and are at an advanced build stage, with assembly of the Ford F-59 ‘Stripped Chassis’ taking place at Ford’s DCP assembly facility in Detroit and the Isuzu NRR being assembled nearby at a third-party plant.

SEA Electric has also recently established its own site in Los Angeles, and appointed its first US-based employees to guide these new products and future projects through US certification and distribution.

SEA Electric managing director Tony Fairweather says establishing a presence in the United States was a logical step forward for the company given the size of the market and its demand for EVs.

“We see a lot of opportunities in the States, it’s an extremely large commercial vehicle market with a strong interest in sustainability – the US is an important part of our growth plans.

“The country’s high urbanisation and sprawling cities also provide conditions where EV can deliver operators a lot of efficiency gains, not to mention the obvious environmental benefits,” Fairweather says.

The Ford F-59 Stripped Chassis is powered by the SEA-Drive 120b power-system which produces 150kW of continuous power, 250kW of maximum power, continuous torque of 1230Nm and maximum torque of 2500Nm.

The second of the display trucks is a Pantech-bodied Isuzu NRR and also features the SEA-Drive 120b power-system.

Both vehicles have operating ranges of up to 350 kilometres.

Both vehicles will enter in-service trials with major US fleets following the Work Truck Show. Read More

MEDIA RELEASE

19 February, 2019
Australia’s SEA Electric to launch in the United States Leading automotive electric technology company, SEA Electric, is set to launch in the United States in coming weeks, showcasing two trucks at the ‘Work Truck Show’ in Indianapolis during March, while also attending California’s ‘Advanced Clean Transportation Expo’ in April.
The display vehicles are based on popular Ford and Isuzu platforms and are at an advanced
build stage, with assembly of the Ford F-59 ‘Stripped Chassis’ taking place at Ford’s DCP
assembly facility in Detroit and the Isuzu NRR being assembled nearby at a third-party plant.
SEA Electric has also recently established its own site in Los Angeles, and appointed its first US
based employees to guide these new products and future projects through US certification and
distribution.
SEA Electric Group Managing Director, Tony Fairweather, said that given the size of the market
and its demand for EV, establishing a presence in the United States was a logical step forward
for the company.
“We see a lot of opportunities in the States, it’s an extremely large commercial vehicle market
with a strong interest in sustainability – the US is an important part of our growth plans,” Mr
Fairweather said.

“The country’s high urbanisation and sprawling cities also provide conditions where EV can
deliver operators a lot of efficiency gains, not to mention the obvious environmental benefits.”
The Ford F-59 Stripped Chassis is powered by the SEA-Drive™ 120b power-system which
produces 150kW of continuous power and 250kW of maximum power, but more importantly
for a commercial vehicle, continuous torque of 1230Nm and an impressive maximum torque
figure of 2500Nm.
The second of the display trucks is a Pantech-bodied Isuzu NRR and also features the SEA
Drive™ 120b power-system.
Both vehicles have generous operating ranges of up to 350kilometres (220 miles), removing
any chance of ‘range angst’ for operators.
Shortly following the Work Truck Show, both vehicles will enter in-service trials with major US
fleets.
SEA Electric also has a Ford Transit van program underway which will enter a trial stage in April.
This van features the SEA Drive™ 70 power-system which provides continuous power of 75kW,
maximum power of 134kW and 700Nm of maximum torque for an operating range of up to
350km also (220 miles).
Batteries for all three vehicles can be fully charged overnight in 4-6 hours using a 20kW on
board charger, which allows them to be plugged-in and charged from any three-phase power
source.
Mr Fairweather said that the SEA-Drive™ powered vehicles were ideal for urban and
metropolitan back-to-base distribution applications.
“For back-to-base operations EV technology is extremely attractive because at the end of the
working day, these vehicles are conveniently charged overnight and ready to go again the next
morning,” he said.
“Operators can expect a payback period of less than four years on their SEA-Drive™ powered
truck or van, so with a battery lifecycle of approximately 10 years, there are great efficiencies
to be gained over the whole life of the vehicle.”
SEA Electric’s US venture builds on the company’s Australian operations, which has seen it
become the EV technology supplier of choice for the domestic market.

The company is also well advanced in expanding its local assembly presence in Victoria’s
Latrobe Valley (east of Melbourne), providing capacity to produce up to 2,400 CBU (completely
built up) van, light commuter bus and truck units per annum.

For further information, please contact:
Tony Fairweather, Group Managing Director – SEA Electric T: +61 3 9706 8489 M: +61 (0)416 162 356 E: tony@sea-electric.com

About SEA Electric
SEA Electric is an Australian automotive technology company that locally develops and assembles 100 per cent
electric-powered vans, commuter buses and light/medium duty rigid truck models using its proprietary SEA-Drive™
power-systems. Additionally, the company also works closely with a selection of leading Australian truck brands to
engineer and install SEA Electric power-systems to their models. SEA Electric operates from a facility in Melbourne
with plans underway for a large-scale assembly facility in the Latrobe Valley in regional Victoria. Australias SEA Electric to Launch in the United States