A shipping company wants to electrify the LA port

A power boat company with roots in Torrance is taking steps to charge battery-powered workboats and infrastructure to the port of Los Angeles, where diesel-burning vessels emit a lot of carbon dioxide.

Arc Boat Co., a Southern California startup that sells electric ships for leisure use, said it will open a R&D facility in the port in June.

The facility marks a shift towards electrification in the busiest ports in the United States and marks the expansion of ARC to the commercial sector.

Arc promises to deliver the promise of electric fleets to transition to transition to transition to transition to transition to the port of Los Angeles and Long Beach before the 2030 deadline set by the port of Los Angeles and Long Beach Zero emissions equipment.

Two ports are located on 10,000 acres of San Pedro Bay, relying on heavy cranes, tugs and trucks to move cargo. Replacing approximately 2,000 U.S. tugboats with electric alternatives can prevent the value of more than 1.6 million cars Greenhouse gas According to Arc, emissions are annually.

“Electric has incredible significance throughout the marine industry,” Mitch Lee, co-founder and CEO of ARC, said in an interview. “These ships have no smoke and you can greatly reduce operating costs.”

Li said electric boats require minimal maintenance and zero fuel, an attractive combination for commercial operators who want to save money and want to enjoy water. He said the arc ships are quieter and easier to manipulate than traditional ships.

Petros Ioannou, an engineering professor who studies transportation technology at USC, said electrification of water vehicles on water will soon increase power.

“The main reason for powering on is indeed the environment,” Iono said. “The question is whether they can solve technical and logistical issues,” including power, range and charging limitations.

Despite the challenges of building batteries that can drive the ship, it includes Navier Electric ships are being produced and sold on the X shore. ARC's business currently revolves around entertainment boats and starts at $268,000.

In a partnership with the diversified Marine Corps company in the shipyard in Portland, Oregon, ARC plans to renovate a 26-foot truck tug with a lithium-ion battery pack and a 600-horsepower drivetrain. The ship will be the first zero-emission tug to support the Los Angeles port operation, the ARC said.

Tugs are an essential tool for the ports of Los Angeles and Long Beach, where they guide larger vessels and move equipment such as barges and cranes.

“The tug runs short, repetitive tasks require high torque and start and end on the same home basis,” Arc said in a statement. Renovation project. “This not only makes them very suitable for power generation, but doing so will greatly reduce operating costs.”

Li said that working with diversified oceans allows Arc to launch new work vessels in partnership with several entities that operate in the port.

“Diverency already knows how to use the port to operate and get the ship to work,” he said. “We are modernizing its tugs and deploying them to the port of Los Angeles, and we are able to provide a fee-based infrastructure as well.”

The tug was modified on May 12, 2025 at Torrance's electric motor in Arc Boat Co..

(Carlin Stiehl/Los Angeles Times)

Lee said the conversion from diesel-powered to electric ships could save about 50% of maintenance and fuel costs for commercial operators, adding that ARC’s new R&D and development facilities will provide the basis to make the conversion possible.

The company did not disclose the funds it invested in research institutions and the accompanying charging network, but said it might require investment of less than $10 million.

The facility will be located on a 35-acre research campus run by nonprofit Altasea. ARC said it will support prototype development, water testing and fleet deployment of electric work vessels. The company built battery packs from a separate facility in Los Angeles.

“Decarbonization of our ports is a critical step in achieving real, substantial climate advancements,” Altasia said in a statement. “Arc Boat’s new R&D facilities, along with the paid infrastructure, will help make LA ports a global model for sustainable maritime operations.”

Launched in 2021 by former Boeing and SpaceX engineers, ARC has a mission to inflate everything on the water, Lee said. Before co-founding the arc with Northwest alum Ryan Cook, Lee grew up in the Bay Area and often rowed with his family.

ARC has received more than $100 million in investment funds from California-based venture capital firms, including Andreessen Horowitz and Lower Carbon Capital. The startup employs 170 employees, including experts from electric vehicle companies Rivian and Tesla backgrounds.

The company did not disclose its annual revenue, but said demand for ships was high. There are two models available for delivery nationwide, including the ARC Sport for wake-up and water skiing; and the arc, luxury cruiser.

ARC is the only electric shipping company to build its own battery packs in-house, Lee said.

Although the parliament was held in Los Angeles, President Trump still challenged the high tariffs on U.S. trading partners, including taxes on goods imported from China. Since then, tariffs on China have been reduced to 30%.

“We are definitely affected by the tariffs and the electric vehicle market has a close connection with Chinese supply chains,” Li said. “We are also ahead of the curve and are more vertically integrated than most companies.”

USC's Ioannou said with the ambition to build electric ships that can haul cargo and travel long distances, ARC will need to stay at the forefront of battery development. As tariffs undermine global trade, producing its batteries at home may bring an advantage.

“Whether this space will evolve rapidly will depend heavily on battery technology and availability,” Ioannou said.

“When you switch from gasoline to electric, you get some benefits, but there are also a lot of headaches,” he said.