GM takes a stake in electrical boating start-up Pure Watercraft

Normal Motors, which has billed itself as “all in on electrification” this yr, has acquired a 25% stake in Pure Watercraft, a Seattle start-up that makes electrical outboard motors for boats, the businesses instructed CNBC.

Pure Watercraft motors use lithium ion batteries and exchange 40- to 50-horsepower outboard motors that burn fuel or diesel. Conventional fuel-powered boats contribute to environmental issues together with noise air pollution, smog, and water air pollution that’s plainly seen floating on the water of their wake. Pure’s programs are a lot quieter and cleaner.

For Pure Watercraft CEO Andy Rebele, a lifelong fishing and boating fanatic and former rowing coach, a private drive to resolve these issues lined up with an enormous market alternative.

In response to the Nationwide Marine Producer’s Affiliation (NMMA) outboard engine gross sales within the U.S. reached a report stage throughout 2020, rising for the ninth consecutive yr, to an estimated $3.4 billion.

“The boating market is rising prefer it hasn’t since post-World Conflict II,” says Rebele. “In the course of the pandemic, individuals wished to do issues with their households, with their pods. Going out on the water is without doubt one of the perfect issues to do.”

That rising market is on GM’s radar as properly. CEO Mary Barra hinted at GM’s curiosity in electrical marine transportation in a weblog publish in October, discussing the corporate’s Ultium battery and Hydrotec gasoline cell platforms.

In response to Rebele, the cope with GM is price $150 million mixed, together with payment-in-kind commitments and capital invested by the autos large. The corporate will not be disclosing the cut up between money and payment-in-kind.

With its funding, GM will develop into a provider of parts to Pure Watercraft, a co-developer of recent merchandise, and can present engineering, design and manufacturing experience to assist the start-up set up new factories, the businesses instructed CNBC.

Its new partnership with GM ought to assist the start-up navigate provide chain points as Pure Watercraft grows, Rebele stated.

For GM, the funding in Pure Watercraft is one other in a collection of strikes to broaden its battery and gasoline cell programs outdoors of automotive. Earlier this yr, GM introduced plans to develop and commercialize electrical locomotives with Wabtec. It additionally has proven curiosity in utilizing its batteries and gasoline cells for aerospace and navy functions.

Pure Watercraft’s post-money valuation stands at $600 million. The 55-employee start-up had beforehand raised $37 million in enterprise funding.

— CNBC’s Mike Wayland contributed to this report.