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A team of former Space-X engineers and boating enthusiasts is aiming to transform recreational boating with a new speedboat that zips across the water on electricity instead of gas or diesel fuel. 

Why it matters: Like automobiles, motorcycles and small airplanes, boats are beginning to go electric, which could make lakes and rivers more serene — and less polluted. 

The big picture: Electric boats have their pluses and minuses.

While quiet and efficient, they require a tremendous amount of energy to propel themselves through the water. 

That means they need a gigantic, heavy battery and can't go very far or very fast— a killjoy for boating enthusiasts. 

But the traditional option — gas boats — are a tremendous pain to own.

"They're really expensive to operate, you have to winterize the engine, they're noisy and unreliable, the fumes are noxious and they're annoying to maintain, says Mitch Lee, a lifelong water skier who is co-founder and CEO of Los Angeles-based Arc Boats.

Filling them with gas is expensive too — perhaps one reason that some boat owners never leave the dock. 

"Taking a boat out on the lake for a day is easily going to cost at least $100," Lee says. 

What's happening: Today Arc is introducing the all-electric Arc One, a 24-foot cruiser developed from scratch to address the challenges posed by battery-operated boats. 

 It combines a lightweight aluminum hull with a gigantic 220 kWh battery — three times the size of the battery in a Tesla Model Y — integrated into the floor. 

The combined weight — including the 2,000-pound battery — is about three tons, comparable to a conventional boat, says Lee.

With a 500-hp motor, the Arc One can travel up to 40 mph, with three to five hours of cruising time, he says. "When you’re on a lake and going 40 mph, you’re flying."

Prepare to pay a lot: The limited edition Arc One will sell for $300,000 — about twice the price of typical premium sports boats.

Lee says future Arc models will be cheaper, just as each of Tesla's successive models came down in price. 

Production is underway, and the first deliveries will begin this summer. 

Where it stands: Other marine companies are shifting to electric propulsion as well.

Mercury Marine, whose engines power about half of all recreational boats in the U.S., introduced a new electric outboard motor last week at the Miami Boat show.

It features a swappable battery pack so boaters can keep an extra onboard just in case. The battery can be charged at home or from a marine pillar. 

It's the first of five new electric outboard models coming from Mercury by 2023.

Candela, a Swedish tech company, just completed a chilly maiden voyage in Stockholm with its unique hydrofoiling electric boat, the C-8. 

It has computer-controlled hydrofoils – underwater wings – that enable the boat to fly above the waves. 

The reduced drag means Candela’s craft uses 80% less energy than conventional boats, translating into a longer cruising range, the company said. 

Even General Motors is getting into the electric boat business. The carmaker recently acquired a 25% stake in Pure Watercraft, a Seattle-based electric boat startup. 

In January, the two companies introduced an electric pontoon boat.

My thought bubble: As an avid sailor, I'm content to be gliding along at 4 or 5 knots — or a little over 4 to 5 mph — and I'll be thrilled when the speed boats all around me stop making so much noise. 

Putting a charge in the gas-guzzling power boat industry

Battery-powered vessels have pluses and minuses

Image of the Arc One, a new electric boat going on sale in summer 2022

Arc One electric speed boat. Photo courtesy of Arc 

Boat industry

Electric vehicles

Transportation

After a record economic expansion, the coronavirus pandemic sent the U.S. economy into a recession as unemployment soared to staggering heights. The country now faces urgent questions about how much stimulus is needed for reeling consumers and businesses, and what a recovery might look like.

Economy & Business

Ominous forecasts about the impact of climate change serve as the backdrop for the world — led by U.S. lawmakers and companies — to debate big action on the problem, which could upend energy systems and our way of life.

Energy & Environment

Axios Generate

Ford this morning said it's separating its electric vehicle and internal combustion businesses into separate units.

Why it matters: The creation of distinct business lines — called "Model e" and "Ford Blue" — underscores how auto giants are reorienting around EV development.

How it works: Ford said the two units would be "strategically interdependent" and share relevant tech.

Together with the Ford Pro commercial services line launched last year, Ford said the three units will begin to separately report profits and losses in 2023.

What's next: Ford has recently launched or unveiled electric models, including the Mustang Mach-e that began deliveries last year, and the electric F-150 pickup slated to start reaching customers later in 2022.

It said today that it expects EVs to account for half its global sales by 2030.

Quick take: The move appears to be an effort to woo investors with a pitch around combining Ford's in-house resources and balance sheet with greater agility to better compete with EV startups.

CEO Jim Farley, in a statement, said the new unit will give the automaker "start-up speed and unbridled innovation," that combined with their industrial know-how and other attributes that "start-ups can only dream about."

Ford creates business unit for electric cars

The creation of distinct business lines underscores how auto giants are reorienting around EV development.

President Biden's plan to electrify the federal vehicle fleet by 2035 is off to an inauspicious start, with a deal this week by the U.S. Postal Service to buy nearly 150,000 gasoline-powered mail trucks.

Why it matters: The $11.3 billion contract commits the Postal Service to at least another decade without electrifying their fleet, undercutting the nation's climate goals, say Biden administration officials and environmental groups, which tried to block it.

Details: The contract with OshKosh Defense is for up to 165,000 vehicles over the next decade, 90% of which would be conventional gasoline-powered trucks. 

The initial order includes 5,000 EVs, starting in 2023, with the opportunity to increase the number of EVs later "should additional funding become available," a USPS spokewoman says. 

Oshkosh says the trucks were designed so that it can produce any mix of electric or gas vehicles USPS wants, including an all-electric fleet.

Yes, but: Opponents say the USPS used a flawed environmental analysis that downplayed the benefits and overestimated the costs of going electric. 

Between the lines: The agency estimated, for example, that buying EVs would cost at least $30,000 more per vehicle than the gasoline alternative.

The EPA says USPS used "wildly inaccurate gas prices that made owning a gas-powered truck seem comparatively cheap," per the Washington Post. 

The Postal Service projected gas prices of $2.19 per gallon, rising to $2.55 by 2040, for example. But gas prices were already above $2.80 a gallon when it did the analysis, the EPA said. 

And with energy prices soaring in light of the new Russia-Ukraine conflict, it's hard to see gas prices falling any time soon. 

What they're saying: "It amazes me that on a day when oil topped $100 a barrel, the Postal Service has an analysis assuming gas will be artificially low for decades," Adrian Martinez, a senior attorney for Earthjustice.org, tells Axios.

"Beyond the deeply flawed climate and air pollution analysis, the environmental review appears to be analyzing economic conditions like fuel prices, battery prices, and other inputs from a fantasyland, rather than reality."

The other side: Postmaster General and USPS CEO Louis DeJoy says the agency's decision was "fiscally responsible" and that postal workers couldn't wait any longer for safer, modern vehicles. 

"Our commitment to an electric fleet remains ambitious given the pressing vehicle and safety needs of our aging fleet as well as our fragile financial condition," DeJoy said in a statement. 

As the Postal Service's finances improve, it will consider EVs — if Congress provides additional funding, he said.

What to watch: A legal battle could be next, along with intense scrutiny from Congress, Martinez says.

At least your mail carrier should be happy: The new postal trucks are chock full of improvements like a driver airbag, front and rear automatic braking, better visibility, low step-in heights, a 360-degree camera system, air conditioning, adjustable mail trays and large door openings. 

U.S. Postal Service flouts Biden's electric vehicle plan

The mail agency will replace 90% of its fleet with gasoline delivery trucks

Image of the US Postal Service's next-generation delivery truck, coming soon

The Postal Service's next-generation delivery vehicle. Photo: Courtesy of OshKosh Defense 

United States Postal Service (USPS)

Revel, a New York-based company best known for its rentable, bright blue electric mopeds, has raised $126 million in Series B funding led by Blackrock.

Why it matters: Investors are betting that Revel can build a successful business where others haven't done so well, or have taken a drastically different approach — namely operating mopeds at scale, and a ride-hailing service that employs its drivers. Oh, and it's also running electric car charging stations.

Details: Toyota Ventures, Goodyear Ventures, Shell Ventures, Broadscale Group, Obsidian Ventures, the St Baker Energy Innovation Fund and Knighthead Capital Management also participated in the round. The company plans to use the funds to expand its vehicle charging network.

The bottom line: "The investment giant has raised billions for renewable power projects, but also made headlines in recent months for its continued investment in fossil fuels, and in 2020 helped pump more than 330 million tons of greenhouse gases into the atmosphere." — Kevin Duggan, AMNY

Electric moped company Revel raised $126 million led by BlackRock

Investors are betting that Revel can build a successful business and expand its charging station network.

From the Valley to D.C., Big Tech players like Facebook, Google and Amazon are under more scrutiny than ever as new technology develops and privacy and antitrust concerns grow in lockstep with companies’ ambitions.

Technology

A startup using artificial intelligence to locate critical materials like cobalt and nickel needed for electric vehicle batteries just brought in almost $200 million.

Driving the news: KoBold Metals, based in Berkeley, California, raised $192.5 million in Series B funding led by T. Rowe Price Associates and joined by prominent investors and companies.

They include Canada Pension Plan, mining giant BHP, Mitsubishi and Sarah Kunst’s Cleo Capital. 

Past backers — the Bill Gates-led Breakthrough Energy Ventures, Andreessen Horowitz and oil giant Equinor — also joined the round.

It's the company's largest funding round to date.

What we're watching: KoBold announced a commercial partnership with BHP last year. A spokesperson, Justin Hamilton, tells Axios it will soon announce agreements with other major mining companies.

Why it matters: Current growth of electric transport and renewable power is creating an intense quest to find and produce huge quantities of raw materials.

Policies that actually got the world on a path to the steep emissions cuts needed to meet the Paris Agreement goals would put this race on steroids and require even more massive investments.

The market for these minerals could eventually reach over $200 billion in annual revenue, per the International Energy Agency.

Threat level: KoBold argues that old ways of finding deposits are way out of step with the future demand for clean-energy minerals.

"Exploration success rates have been declining in recent years because the easy surface deposits have been found and because there just hasn't been a lot of investment in exploration technology," KoBold CEO Kurt House told Axios last year.

How it works: The company aims to build what backers call "Google maps" for the Earth's crust. 

KoBold analyzes vast amounts of existing data and combines it with new surveying, sampling and drilling to find new deposits and expand existing resources.

"No one else in the world is doing anything like what they’re doing," said Apollo Projects' Sam Altman, another investor, in a statement on KoBold's use of AI to synthesize old and new data to predict subsurface composition.

The big picture: KoBold is among a wider set of companies and researchers aiming to bolster supplies for batteries and renewable projects that also have heavy mineral demands.

Some companies even plan the extraction of mineral nodules on the ocean floor that contain cobalt, nickel and other resources.

What they're saying: Seaver Wang of The Breakthrough Institute said the need for battery minerals for cars, vans and trucks will be huge even under highly optimistic scenarios for battery recycling and car use being displaced by bikes and electric buses.

"Given how obvious the drivers of demand for EV minerals are, it's no surprise that everyone from the mining majors to disruptive startups is reorienting to meet expected growth in demand," he said via email.

Minerals needed for electric vs. conventional cars

Between the lines: The chart above comes from an International Energy Agency report about minerals needed for climate-friendly transport and energy growth. 

That 2021 analysis provides a sense of scale. Under nations' existing policies, mineral needs for clean energy are on track to double by 2040.

A strong push to keep the global temperature rise below 2°C above preindustrial levels would quadruple today's requirements by then.

A scenario that enables net-zero global emissions by 2050 requires a sixfold increase over the next two decades.

How artificial intelligence could help fuel the electric vehicle revolution

A startup using AI to locate critical materials like cobalt needed for EV batteries just brought in almost $200M.

Illustration of a mineral with a dollar sign on it.

The U.S. Army released its first climate strategy on Tuesday, outlining plans to cut its greenhouse gas pollution in half by 2030 and achieve net-zero greenhouse gas emissions by 2050.

Why it matters: A 2019 report from Brown University estimated that the U.S. military has emitted 1,212 million metric tons of greenhouse gases since 2001. In 2017 alone, its emissions totaled 59 million tons, more than many industrialized nations.

Details: The strategy states that the Army will "increase capability and installations’ resiliency; prepare for new hazards and new environments; modernize processes, standards, and infrastructure; and decrease operational energy demand—all of which in turn will reduce greenhouse gas (GHG) emissions."

Investing in an all-electric non-tactical vehicle fleet by 2035.

Significantly reducing operational energy and water use.

Buying electricity from carbon-pollution-free generation sources.

Building out ways to reduce direct greenhouse gas emissions that result from Army training by 2028.

What they're saying: "For today's Soldiers operating in extreme temperature environments, fighting wildfires, and supporting hurricane recovery, climate change isn't a distant future, it is a reality," Army Secretary Christine Wormuth said in the document's foreword. 

"The effects of climate change have taken a toll on supply chains, damaged our infrastructure, and increased risks to Army Soldiers and families due to natural disasters and extreme weather."

It "threatens America's security and is altering the geostrategic landscape as we know it," she noted. "The time to address climate change is now."

Worth noting: Due to national security reasons, it's unknown how much the military actually emits.

U.S. Army to aim for net-zero greenhouse gas emissions by 2050

"Climate change threatens America's security," Army Secretary Christine Wormuth said. "The time to address [it] is now."

Photo of an Army vehicle in a large body of water

Service members assist law enforcement with evacuation efforts as the Black Creek river begins to crest in Florence, South Carolina on Sept. 17, 2018 after Hurricane Florence hit the southeast U.S. Photo: U.S. Army National Guard via Getty Images

United States Army

Alternative energy

Climate change

President Biden has made the COVID-19 crisis and a post-Trump return to national unity and traditional democratic ideals his top priorities. From vaccinations to stimulus to schools, Biden is seeking bipartisan compromise while showing a willingness to use executive authority and bare Democratic majorities in the U.S. House and Senate to implement his policies. Republican leaders are navigating deep party divisions over if and how to move beyond former President Trump.

Politics & Policy

The auto services and products provider Valvoline is launching offerings tailored to electric vehicles in some retail locations.

Why it matters: Valvoline's announcement on Monday is the latest sign of how incumbent auto-related companies are adapting to the growth of EVs.

Catch up fast: In late January, for instance, Bridgestone said it would offer expanded EV services at dozens of Firestone Complete Auto Care and Wheel Works centers in Austin and San Francisco.

Jiffy Lube in late 2021 announced it was beginning to expand EV-tailored services in some locations, Charged Fleet reports.

Valvoline has a partnership with the EV startup Arrival — which is targeting the van, bus and ride-hailing market — as one of its U.S. service providers.

Zoom in: Valvoline said it's piloting services like inspection and maintenance for EV owners.

Some of it is about the type of maintenance needed for gas-powered cars too — think tire rotation, wipers and such — but overall will have a "specific focus" on EVs, the company said.

Passenger electric vehicle sales

Data: BloombergNEF, MarkLines, Jato, JADA, Motie; Chart: Will Chase/Axios

One reason auto service companies want in on EVs is that sales are growing rapidly, as you can see above.

The electric vehicle revolution comes to auto service providers

Valvoline said it's piloting services like inspection and maintenance for EV owners.

Illustration of a car with a battery-shaped license plate with electricity symbols on it

The nation's first stretch of road to wirelessly charge electric vehicles while they're in motion will begin testing next year in Detroit.

Why it matters: "Electrified" roadways, which have wireless charging infrastructure under the asphalt, could keep EVs operating around the clock, with unlimited range — a big deal for transit buses, delivery vans, long-haul trucks and even future robotaxis. 

In-road charging could also help pave the way for more widespread EV adoption by relieving consumers of the need to stop and plug in their cars.

Driving the news: Electreon Wireless, an Israeli company whose plug-free charging infrastructure is already being tested in Europe, will deploy its first U.S. pilot in Detroit's Michigan Central district, a new mobility innovation hub near downtown. 

The electrified road, up to a mile long, would allow EVs to charge whether they're stopped or moving, and should be ready for testing in 2023.

The state will contribute $1.9 million toward the project, which will also be supported by Ford Motor, DTE Energy and the city of Detroit. 

The big picture: Wireless EV charging is expected to grow to $827 million worldwide by 2027, says Meticulous Research. 

Most of that growth will be for "static" wireless charging systems in places like parking garages, taxi stands, and bus or truck depots.

Major U.S. players include WiTricity, WAVE, Momentum Wireless Power, Mojo Mobility, HEVO and Plugless Power, per the research firm.

Electreon claims leadership in the market for "dynamic" wireless charging — systems that allow vehicles to suck up juice while in motion.

It has ongoing pilots in Germany, Italy and Sweden, and will soon launch a plug-free charging network for 200 public buses in Tel Aviv. 

How it works: Wireless EV charging systems use magnetic frequency to transfer power from coils buried underground to a receiver pad attached to the car's underbelly.

An EV can pull into a designated parking place with an underground charging pad and add electricity the same way a smartphone charges wirelessly. 

Along an electrified road, vehicles with wireless charging capability can suck up energy as they drive, but for all other cars, it's an ordinary road. 

Between the lines: Wireless, or inductive, charging has multiple benefits over traditional EV plugs. 

Vehicles that charge on the go can use smaller, cheaper batteries.

They also don't need to be taken out of service for charging. More uptime means more revenue for fleet owners and better customer service for transit agencies.

A taxi waiting at the train station, for example, can add 10 minutes of charging without having to plug in. Buses can also top off their battery at the depot while loading passengers. 

And wireless charging is ideal for autonomous vehicles, which don't have a driver to plug a traditional charging cable into the car's socket. 

Yes, but: Wireless charging can add $3,000 to $4,000 to an already pricey EV, notes Meticulous Research.

Electreon, which is working with carmakers to add receivers to their vehicles, aims to get the cost down to $1,000 or $1,500, Stefan Tongur, Electreon's vice president of business development, tells Axios. 

Users would likely access the feature through a monthly subscription, he noted. 

Where it stands: President Biden is calling for 500,000 new public charging stations by the end of 2030, and Congress allocated $7.5 billion for EV charging in the $1.2 trillion infrastructure package passed last November. 

 "What a great time to come to the U.S. and show there’s an alternative — a  smarter, faster charging system that takes us to where we need to be," says Tongur.

Editor's note: This story originally published on Feb. 2. 

A roadway will charge your EV while you're driving

Vehicles with wireless charging could drive non-stop, with unlimited range

Electric vehicles sold by automakers in 2021

Data: International Energy Agency via EV-volumes.com; Chart: Kavya Beheraj/Axios 

The electric vehicle market is poised for both rapid growth and fundamental reshaping as a tsunami of new models start reaching drivers.

The big picture: Global EV sales — battery-electric and plug-in hybrid combined — more than doubled last year to around 6.6 million vehicles. They accounted for 8.6% of the global light-duty vehicle market, compared to about 2.5% in 2019, per a new International Energy Agency commentary.

Analysts see another growth surge this year, with the research firm BloombergNEF projecting over 10.5 million in sales.

Our thought bubbles: Here are a few takeaways from the latest sales data and analyses...

EVs are not yet a truly global trend. According to IEA, China, Europe and the U.S. together account for about two-thirds of the global car market but 90% of EV sales. The chart above shows the top 5 global EV companies in 2021. EVs were below 1% of sales in Brazil, India, Indonesia and Japan last year, per IEA.

Policy is still really important — think EU carbon rules and subsidies there and in China — but there are more forces spurring EV purchases now. 

"Government policies remain the key driving force for global electric car markets, but their dynamism in 2021 also reflects a very active year on the part of the automotive industry," IEA notes.

Big automakers like GM are ramping up investment plans and setting aggressive sales growth targets.

Lots of new models are about to reach consumers. Per the consultancy IHS Markit, there will be 146 EV models available in the U.S. in 2025, compared to just 24 in 2020.

The supply chain crunch is real. Last year saw significant price increases for steel, lithium, nickel and other metals, and chip shortages."

For the first time, supply side bottlenecks are becoming a real challenge to the electrification of road transport and are adding to traditional demand side challenges," IEA said.

Tesla's on top but its dominance could erode. The company led the world in global sales with 936,000 units last year, IEA notes, and another growth surge is projected in 2022.

But overall the market is growing fast and lots of new entrants are arriving. Analysts see the ongoing loss of Tesla's U.S. market share even as its sales grow. 

A recent Bank of America note sees Tesla's share of U.S. EV sales falling from 78% in 2018 to around 20% in 2024. IHS Markit sees Tesla with less than 15% of U.S. sales by 2027.

But that says more about EV growth than any weakness from Tesla, and investors seem to agree, with the company boasting a market cap close to $1 trillion despite growing competition.

Electric vehicles remain a small slice of U.S. sales, but the battle among big U.S. automakers for the market of the future is intensifying.

Driving the news: General Motors, when reporting earnings yesterday, talked up the acceleration of its EV output and launches and signaled it may expand its existing plans to invest $35 billion in electric and autonomous tech in the 2020-2025 period.

 "To deliver this acceleration, we are pulling ahead significant investment into the 2022 to 2025 time frame, and we will share more details as we further refine our plans," CEO Mary Barra said on an earnings call, touting investments in the needed battery supply chain.

The intrigue: Bloomberg, citing anonymous sources, reported Tuesday that Ford may add significantly to current plans to invest $30 billion into electrification through 2025.

The company is "planning a major reorganization to prepare for the electric future," it reports. Ford did not respond to an inquiry.

Go deeper: A roadway will charge your EV while you're driving

Taking stock of the global electric vehicle race

The electric vehicle market is poised for both rapid growth and fundamental reshaping.

Tesla net income

Data: FactSet and company release; Chart: Will Chase/Axios

Tesla is expected to report record earnings Wednesday afternoon after its highest-ever quarterly and full-year sales.

Why it matters: Beyond the Q4 numbers, analysts and investors will be looking for clarity on the still-mysterious timing of planned products like the Cybertruck and the semi-truck.

By the numbers: "[A]nalysts polled by Bloomberg expect the company to post quarterly profits of $2.30 per share on revenues of $16.6 billion," which is far above Q3 levels, Insider reports.

Go deeper: Cybertrucks, new factories in focus as Tesla set to report record earnings (Reuters)

Tesla earnings put focus on product plans

Investors will be looking for clarity on the still-mysterious timing of planned products.

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