GM Acquires Stake in Electric Boat Startup

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] General Motors (GM) of the United States, which has announced its transformation into an electric vehicle company, has now acquired a stake in an electric boat startup. This move is interpreted as a strategic step to expand its battery and fuel cell systems beyond automobiles into various fields.

According to CNBC on the 22nd (local time), GM acquired a 25% stake in Pure Watercraft, a U.S. electric boat startup. Pure Watercraft stated that the 25% stake acquired by GM is valued at $150 million (approximately 178.5 billion KRW) at market value. GM is known to have acquired the Pure Watercraft stake through cash and in-kind contributions. However, specific transaction terms such as the ratio of cash to in-kind contributions were not disclosed. Through this deal, Pure Watercraft was valued at $600 million.

Pure Watercraft, an electric boat startup located in Seattle, USA, is an eco-friendly company specializing in electric motors. Pure Watercraft has contributed to solving environmental issues such as noise pollution, smog, and water pollution by replacing the power of 40-50 horsepower outboard boats, which traditionally used gasoline or diesel motors, with lithium-ion electric motors.

As environmental issues have become a hot topic worldwide, the electric motor market aimed at preventing water pollution is also experiencing rapid growth. According to the National Marine Manufacturers Association (NMMA) in the U.S., sales of electric motors in the U.S. have steadily increased for nine consecutive years, reaching $3.4 billion in 2020.

Andy Rebele, CEO of Pure Watercraft, stated, "The demand for boats equipped with outboard motors has significantly increased due to the COVID-19 pandemic."

Through this transaction, GM plans to expand its battery and fuel cell systems beyond automobiles into various fields such as marine and aerospace.

Earlier in October, GM CEO Mary Barra hinted at interest in the electrification of maritime shipping using the company’s Ultium battery and Hydrotec fuel cell platform.

CNBC evaluated, "This year, GM announced plans to collaborate with U.S. locomotive manufacturer Wabtec on the development and commercialization of electric locomotives," adding, "In addition, GM has shown interest in entering the aerospace and military sectors by utilizing its electric batteries and fuel cells."