General Motors (GM) is on a mission for an electric future starting with cars and now is exploring the electric revolution with boats. GM acquired a 25% stake in the Seattle-based start-up, Pure Watercrafts, which manufactures electric outboard motors for boats.
The motors created by Pure Watercraft draw power from lithium-ion batteries that can replace 40- to 50-horsepower outboard motors powered by diesel or gas. Traditional boating uses motors powered by fossil fuels that negatively impact the environment with smog, noise, and air pollution that can be visible floating on the surface of the water.
Pure Watercraft ensures their boat motors are cleaner and quitter compared to traditional boats. Pure Watercraft CEO Andy Rebele is a lifelong boating and fishing enthusiast as well as a former rowing coach who had a personal drive to solve the issues surrounding his lifelong passions. Rebele took advantage of this venture to create a solution that is lined up with a massive market opportunity.
In 2020, the National Marine Manufacturer’s Association (NMMA) disclosed that the U.S. reached a record level increasing the market value for the ninth consecutive year to an estimated $3.4 billion. The growing boating market didn’t go unnoticed by GM as they have shown interest in utilizing electric power for boats previously.
Rebele disclosed the deal with GM is worth $150 million combined including capital invested and payment-in-kind commitments by General Motors. The investment deal stipulates GM will become the supplier of components to Pure Watercraft, working as a co-developer of new products, and providing manufacturing, engineering, as well as design expertise to assist the start-up in establishing new factories.
As Pure Watercraft grows, this partnership with GM can help them navigate supply chain issues. This partnership has already proved successful with Pure Watercraft’s post-money valuation to $600 million as the 55-employee start-up previously raised $37 million in venture funding.
This is an interesting and bold move for GM but their dedication to an electric future is paramount to the carmaker. This deal is an extension of their future business model and will help ensure the future of both companies during the electric revolution. The research for this article was sourced from CNBC.
