Carbon Revolution reported the cancellation of two electric vehicle wheel programs due to weakening EV market demand
Carbon Revolution has secured US$5m from Orion Infrastructure Capital (OIC), with up to US$2m additional funding potentially available from March 2026. The carbon fibre wheel manufacturer also reported the cancellation of two electric vehicle wheel programs by a customer due to weakening demand in the EV market.
The US$5m was released on 31 October in exchange for senior secured notes with similar terms to existing notes. OIC will receive penny warrants to purchase shares equal to 5% of Carbon Revolution’s outstanding shares. OIC and existing noteholders agreed to partial payment in kind for certain interest payments until July 2026, with principal repayments deferred to January 2027.
The firm is pursuing claims related to the cancelled programs, which it had expected to contribute substantial wheel volumes. Carbon Revolution previously revised revenue forecasts downward in July 2025 and slowed expansion plans due to lower than expected demand.
The company is not in compliance with certain Nasdaq continued listing requirements and submitted a plan to regain compliance. Carbon Revolution said it expects to need additional funding in the short term and is exploring strategic and financing options.
SOURCE: Carbon Revolution
