Electric boat startup Arc is entering the commercial marine sector with the development of an all-electric tugboat slated to begin operations at the Port of Los Angeles later this year. The 26-foot vessel, currently undergoing retrofit, will incorporate Arc’s proprietary powertrain and software technologies, marking the company’s first step beyond recreational boating.
Founded in early 2021 by a team of engineers with backgrounds at SpaceX, Tesla, Rivian, and Lyft, Arc initially focused on high-performance electric recreational boats.
The company’s early models, including the limited-run Arc One and the more advanced Arc Sport launched in 2024, garnered attention for their power and design. Building on this foundation, Arc is now adapting its high-voltage battery and drivetrain architecture for commercial use.
The new electric tugboat is being developed in partnership with Diversified Marine Inc., a shipyard based in Portland, Oregon. The vessel will be powered by a 600-horsepower dual-motor system and equipped with large lithium-ion battery packs. It will also feature a modernized helm and real-time performance monitoring through Arc’s onboard software.
The tugboat will operate within the Los Angeles and Long Beach port complex, a major hub that handles over three-quarters of West Coast maritime cargo.
The ports have established targets to fully transition to zero-emission equipment by 2030 and zero-emission trucks by 2035, with further electrification of harbor craft to follow.
Arc’s retrofit approach is designed for modularity and transportability, and the company says this project is already informing the design of larger electric vessels expected to follow.