Federal News
Arc Boat Company Expands Defense Electric Vessels
March 19, 2026
Arc Boat Company, a Los Angeles-based electric powerboat manufacturer founded by veterans from Rivian, SpaceX, and Tesla, has secured $50 million in Series C funding to expand its electric propulsion technology into commercial and defense maritime markets. This latest investment brings total funding to $160 million, enabling Arc to supply electric propulsion systems to defense contractors and collaborate with shipyards on commercial vessels. The move reflects growing demand for maritime electrification driven by cost efficiency and environmental considerations.
- Why this matters: Defense procurement professionals should note the emergence of electric propulsion technologies as viable options for naval and support vessels, potentially impacting future vessel modernization and acquisition strategies.
- The expansion signals increased opportunities for defense contractors to integrate electric marine systems, aligning with broader DoD goals for energy efficiency and emissions reduction.
- Companies in defense shipbuilding and marine systems should evaluate partnerships or supplier relationships with electric propulsion innovators like Arc Boat Company.
- Procurement planners may anticipate evolving requirements and solicitations favoring electric or hybrid propulsion technologies in upcoming maritime contracts.
The right strategy was go develop the technology, get it to work on the high end of consumer boats, then take that technology as you get some experience with it and make sure the economics really work well for the commercial sector, and you have the reliability for the commercial sector.
— Greg Reichow, General Partner at Eclipse
Vendors
Arc Boat Company, Eclipse Ventures, a16z, Menlo Ventures, Lowercarbon Capital
Locations
Sources
- Electric Speed Boat Maker Expands to Defense With New Funding (2) · Bloomberg Government News · Mar 19
- Arc expands into electric commercial and defense boats with $50M raise | TechCrunch · TechCrunch · Mar 19