Expansion into Commercial Sector

Set to launch a research and development facility in June, Arc Boat Co. marks its transition from recreational electric boats to commercial applications at the nation’s busiest cargo port. This initiative is a crucial step toward the port’s goal of transitioning to zero-emission equipment by 2030.

The ports of Los Angeles and Long Beach, sprawling over 10,000 acres in San Pedro Bay, are known for their reliance on heavy machinery. Arc proposes that switching out approximately 2,000 tugboats in the U.S. with electric alternatives could eliminate over 1.6 million cars’ worth of greenhouse gas emissions each year.

Advantages of Electric Boats

“Across the entire marine industry, going electric makes an incredible amount of sense,” says Mitch Lee, Co-founder and CEO of Arc. He emphasizes the health benefits of eliminating fumes and the substantial cuts in operating costs associated with electric vessels.

• Minimal maintenance needs
• Elimination of fuel costs
• Quieter and easier to maneuver

Technological and Logistical Challenges

Experts like Petros Ioannou, an engineering professor at USC, recognize the environmental benefits of electric boats but caution against potential technological hurdles such as power limitations and charging infrastructure.

Arc currently focuses on recreational boating with models priced from $268,000. However, its new partnership with Diversified Marine Inc. aims to retrofit a 26-foot tugboat with lithium-ion batteries, marking the first zero-emission tugboat to aid operations at the Port of Los Angeles.

Cost Savings and Future Plans

Switching to electric workboats could lead to approximately 50% savings on maintenance and fuel costs, according to Lee. Although specific financial figures have not been released, an investment of less than $10 million is anticipated for the new facility and charging network.

The R&D center will be located within a 35-acre campus managed by AltaSea and will assist in the prototype development and on-water testing of electric workboats.

Company Background and Future Ambitions

Founded in 2021 by former engineers from Boeing and SpaceX, Arc Boat Co. aims to revolutionize maritime transport by electrifying water vessels. With over $100 million in funding from various California-based venture capital firms, the startup currently employs 170 people.

Despite challenges from tariffs on imported components, Lee believes Arc’s in-house battery manufacturing may provide a competitive edge in the evolving market. “We are definitely impacted by tariffs, but we’re more vertically integrated than most companies,” he states.