AS INNOVATIVE Australian carbon-fibre specialist Carbon Revolution prepares to merge with a US company and delist from the Australian Securities Exchange, it has been awarded the contract to supply its wheels to the electric Chevrolet Corvette E-Ray.

The E-Ray, announced this week, is the first Corvette to have an electric motor (in addition to its V8 petrol engine) and the first with all-wheel drive.

It will be the second Corvette model to feature Carbon Revolution wheels. The E-Ray contract is in addition to Carbon Revolution’s existing Corvette wheel program.

The company has also confirmed it will be awarded a $12 million grant under the federal government’s Modern Manufacturing Initiative – Round 2 – Manufacturing Integration Stream – Recycling & Clean Energy Priority grant.

In a statement, the company said that an initial payment of $9 million is expected to be made this month with the remainder expected by early 2024.

“The grant strengthens Carbon Revolution’s capacity to supply the rapidly growing global electric vehicle market where its range extending carbon-fibre wheel technology is generating strong future demand.”

Carbon Revolution is in the process of merging with US-based Twin Ridge Capital to create the listed company MergeCo. It then expects to take up a listing on the New York Stock Exchange and delist from the ASX in the first half of this year.

In a statement to the ASX, Carbon Revolution said the merger values CBR’s enterprise at about $300 million.

“The transaction is anticipated to unlock critical investment capital to fund operations, capital expenditure and strategic growth opportunities, support commercialisation and accelerate the path to expected profitability,” it said.

Carbon Revolution expects its Geelong-based mega-line production facility to start producing light weight wheels from the third-quarter of this financial year, including those for the 2024 Ford Mustang Dark Horse.

In August, GoAutoNews Premium reported that contracts with Ferrari and GM’s Corvette C8 had increased Carbon Revolution’s income to a record quarterly $14.8 million, up 80 per cent on the previous quarter.

It sold 4776 wheels in the June quarter, up 48 per cent on the previous corresponding period and up 63 per cent on the March quarter. Sales for the financial year were about 25,000 wheels.

The increase in the June quarter was attributed to a ramp up of the Corvette program – for the C8 Z06 and Z07 – and “strong and consistent demand” from Ferrari which buys the wheels for its 296 GTB and 812 Competizione.

This preceded a call by GM to reduce production of the Z06.

By Neil Dowling