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The Electrification of Everything: From Sky to Sea

The Electrification of Everything: From Sky to Sea

37 segments available

Demand for electric cars is booming. More than 10 million electric cars were sold worldwide in 2022, and consumer behavior is changing as more people embrace alternative and sustainable modes of mobility. While the electrification movement is a critical element of climate action, it also presents new challenges - from the sky to the sea. In this episode, industry experts Gregory Davis, CEO of Eviation Planes, Mitch Lee, co-founder and CEO of Arc Boats, and Duncan McIntyre, founder and CEO of Highland Electric Fleets, dive into how the electrification movement is shaping the future of transport and technology. Topics Covered: 00:00 - Introduction 03:29 - The sustainable aviation industry 04:47 - Electric school, municipal and government vehicles 07:57 - Electric boats 10:49 - What can be transferred from the EV car market? 14:06 - Battery challenges and architecture 19:06 - Providing grid services 22:55 - Building a multimodal business 33:19 - Gaps in the market 46:16 - Do you make, buy, or borrow? 57:26 - What does the future look like for each industry? Resources: * Learn more about Arc Boats: https://arcboats.com * Learn more about Highland Electric Fleets: https://highlandfleets.com * Learn more about Eviation: https://www.eviation.com Stay Updated: Find a16z on Twitter: https://twitter.com/a16z Find a16z on LinkedIn: https://www.linkedin.com/company/a16z Subscribe on your favorite podcast app: https://a16z.simplecast.com/ Follow our host: https://twitter.com/stephsmithio Please note that the content here is for informational purposes only; should NOT be taken as legal, business, tax, or investment advice or be used to evaluate any investment or security; and is not directed at any investors or potential investors in any a16z fund. a16z and its affiliates may maintain investments in the companies discussed. For more details please see a16z.com/disclosures.

Segments Timeline

1
0:00 - 2:04
2:04 duration358 words

The Comeback of Electric Vehicles

This segment explores the historical context of electric vehicles, tracing their origins back to the 1830s and their peak in 1900 when they comprised a third of the cars on the road. It discusses the decline of electric vehicles due to the rise of gasoline-powered cars and highlights the current resurgence of electrification across various transport sectors, including planes, boats, and buses.

"the first electric cars can be traced back to as early as The 1830s Flash Forward to 1900 and astonishingly electric cars make up about a third of the cars on the road but electric vehicles that were ..."

2
2:04 - 3:29
1:24 duration219 words

The Future of Sustainable Aviation

Gregory Davis discusses his journey into the sustainable aviation industry, emphasizing the urgent need to reduce carbon emissions from aviation, which currently contributes significantly to global CO2 emissions. He highlights the potential of new electric aircraft technology to revolutionize air travel by improving cost efficiency and reducing environmental impact.

"investors in any a16z fund please note that a16z and its Affiliates may also maintain investments in the companies discussed in this podcast for more details including a link to our investments please..."

3
3:29 - 5:01
1:32 duration280 words

Electrifying School Buses and Municipal Vehicles

Duncan McIntyre shares insights on electrifying school buses and municipal vehicles, focusing on the benefits of reduced noise pollution and operational costs. He emphasizes the importance of framing electrification as an upgrade rather than just a climate change solution, aiming to drive commercial adoption in local government fleets.

"sustainable aviation industry is still quite young but it's being born out of the fact that we look we know we need to do something about it so what I mean is that right now Aviation contributes about..."

4
5:01 - 6:43
1:42 duration281 words

The Case for Electric Boats

Mitch Lee discusses the advantages of electric boats over traditional gas-powered boats, highlighting their environmental benefits and improved user experience. He reflects on the challenges of transitioning the boating industry to electric power and how advancements in automotive technology are paving the way for this shift.

"pollution could also be you know the ability to move that energy back into the Grid in other ways and so Duncan you're working on school buses which is a whole nother industry and so tell me a little ..."

5
6:43 - 8:05
1:21 duration216 words

Learning from the Automotive Industry

The discussion shifts to how the electric vehicle advancements in the automotive industry can be applied to other sectors like aviation and marine. The speakers share their experiences in adapting existing technologies and innovations to meet the unique challenges of their respective industries.

"medium and heavy duty platforms electrified platforms and so we started Highland focused on the school bus Market because we saw the demand and we also saw the duty cycle as being really appropriate f..."

6
8:05 - 9:56
1:51 duration292 words

Challenges of Power Requirements

The segment delves into the specific power requirements of electric vehicles in different sectors. The speakers discuss the unique challenges faced in aviation, marine, and municipal vehicles, particularly regarding energy storage, continuous power draw, and the need for advanced charging infrastructure.

"Greg and Duncan have mentioned it feels like you can almost piggyback off of the automotive industry or the the strides that have been made there and so tell me about how that has maybe also applied t..."

7
9:56 - 12:02
2:05 duration382 words

Interoperability and Reliability in Electrification

The conversation focuses on the importance of interoperability between electric vehicles and charging infrastructure. The speakers highlight the need for advanced software systems to ensure reliability in charging and operational efficiency, emphasizing the complexities of managing power demands in electrified fleets.

"much better because boats are kind of a point A to point a sort of vehicle so that makes charging a lot more tractable electric boats are a very obvious idea and a huge improvement from a customer per..."

8
12:02 - 15:00
2:57 duration505 words

Innovations in Battery Technology

The segment concludes with a discussion on battery technology innovations and their implications for electric vehicles across different industries. The speakers compare the energy requirements and battery architecture needed for aviation, marine, and municipal applications, emphasizing the advancements made possible by the automotive sector.

"system I would say for us we we had to create a ton of interoperability systems that we didn't expect we'd have to build and what I mean by that is not all charging stations work with all vehicle type..."

9
14:54 - 16:01
1:06 duration213 words

Aerospace vs. Marine Battery Design

Greg Davis shares insights on how battery systems are designed differently for aerospace and marine applications. He explains the importance of energy density and how the lifecycle expectations for batteries vary across industries, with aviation requiring high standards and specific maintenance protocols.

"continuous power because going you know 40 miles an hour through the water which is viscous uh is much harder to sustain that and so that generates a lot of unique challenges for the Marine industry o..."

10
16:01 - 17:19
1:18 duration266 words

Battery Lifespan and Replacement Strategies

The discussion focuses on the expected lifespan of batteries in aviation compared to marine and automotive industries. Greg explains how aviation batteries are designed for replacement every 3000 cycles, while marine batteries may have a longer useful life due to lower usage rates, presenting opportunities for secondary applications.

"unique for each application so I'll give you some practical examples of why that is when you're building a car or I you know done can I get your opinion on this then Mitch actually I think it'd be fun..."

11
17:19 - 18:50
1:30 duration280 words

Utilizing Idle Time for Energy Storage

The segment explores how electric boats and vehicles can utilize their idle time for energy storage. Experts discuss the potential for boats to provide power back to homes during off-seasons, highlighting the versatility of battery technology in optimizing energy consumption.

"hours so that could be two years three years four years depending on how you're going to use the airplane but the great thing is is that the Battery Technology continues to evolve and so our architect..."

12
18:50 - 20:14
1:23 duration256 words

Grid Services and Revenue Opportunities

Duncan McIntyre discusses how Highland Electric Fleets leverages their battery systems to provide grid services, generating revenue by supplying power back to the grid during peak demand. The conversation emphasizes the importance of smart energy management and the potential for electric vehicles to contribute to grid stability.

"better design than you know not to the extent that Mitch explained but in our school bus fleets are on the road and nine percent of the hours in a year and the other here 91 of the time they're sittin..."

13
20:14 - 22:31
2:17 duration376 words

Charging Infrastructure and Opportunities

The experts delve into the charging infrastructure needed for electric boats and vehicles. They discuss the feasibility of charging during downtime and the potential for boats to serve as backup power sources for homes, showcasing the innovative applications of battery technology.

"this is a it's a it's a battery just like any other stationary battery and it can be used to absorb high levels of Renewables production and help meet the grids demand during the Grid's Peaks and so i..."

14
22:31 - 24:46
2:15 duration420 words

Innovative Charging Solutions for Aviation

Greg Davis outlines the charging solutions for electric aircraft, including fixed and mobile charging options. The segment highlights the unique charging cycles for aviation and the potential for integrating charging technology into existing airport infrastructure.

"house for a week without you doing any sort of finagling of of electric loads and that's exciting because it it presents a whole bunch of opportunities to optimize your energy because consumption thro..."

15
24:46 - 27:20
2:34 duration521 words

Exploring New Business Models in Electrification

The discussion shifts to the various business models emerging from the electrification movement. Experts share insights on how companies can generate revenue beyond vehicle sales, including software services and energy management, emphasizing the need for innovative approaches in the evolving market.

"it's it's a great fit yeah Greg will you provide charging Solutions with the planes I would imagine your business model is to sell equipment to operators is that right yeah you know what thanks for th..."

16
27:20 - 28:51
1:30 duration241 words

Designing Better Boats for Reliability

Mitch Lee discusses the design philosophy behind Arc Boats, focusing on reducing maintenance burdens and enhancing reliability. The segment emphasizes innovative features like a closed-loop cooling system and the integration of software to improve user experience and incentivize boat adoption.

"given space the way we think about it is we are delivering better boats that's our goal and everything that we are doing at the design and Manufacturing side is optimized around how do we deliver a be..."

17
28:51 - 30:28
1:37 duration276 words

Performance-Based Business Models

Duncan McIntyre elaborates on the performance-based business model that aligns incentives between manufacturers and fleet operators. By charging per mile and ensuring reliability, this model aims to increase adoption of electric vehicles while simplifying the customer experience.

"core product which is selling better votes to people at uh you know if customers put on earmuffs at very good margins that's kind of the core business that we we think about a lot of the Investments w..."

18
30:28 - 32:10
1:42 duration274 words

Opportunities in Electric Vehicle Infrastructure

The conversation shifts to the infrastructure challenges and opportunities in the electric vehicle market. Experts discuss the need for better electrical services and urban planning to support charging stations, highlighting the potential for new businesses focused on infrastructure development.

"mile we might get chart we might charge a customer three dollars and fifty cents per mile and they get all the equipment they get all the services if the charging station breaks and the chart the bus ..."

19
32:10 - 33:39
1:28 duration303 words

Identifying Gaps in the Electric Mobility Market

The panel explores existing gaps in the electric mobility market, including regulatory challenges and battery technology limitations. They discuss the importance of addressing these issues to unlock new opportunities for innovation and growth in the industry.

"exercise but to actually you know get the power lines get get the get the infrastructure set up for whether it's the airport the marina or or the schoolyard or wherever you're going to do your chargin..."

20
33:39 - 35:00
1:20 duration270 words

The Future of Short-Haul Aviation

Gregory Davis shares insights on the potential for electric aircraft in short-haul travel. He emphasizes the market's untapped potential, with a significant portion of flights being under 500 miles, and discusses how electric technology can transform this segment of aviation.

"biggest opportunities perhaps so in terms of aircraft in the United States there are 5 000 airports about 3 600 of them you can have paved runways nav AIDS you can you can fly a small commuter aircraf..."

21
35:00 - 36:44
1:44 duration323 words

Enhancing Customer Experience with Electric Boats

The segment focuses on the advantages of electric boats over traditional gas-powered vessels. Experts discuss the precision of battery management and the reliability of electric systems, which significantly improve the customer experience and reduce the risk of running out of fuel.

"it's Freedom you know it's it's a it's a great sensation with an airplane you want to take off from the airport you wanted to take off from fly for exactly how long you wanted to fly and then land at ..."

22
36:44 - 39:00
2:15 duration391 words

Exploring New Opportunities in Electric Mobility

The panelists discuss three tiers of opportunities in the electric mobility space: product innovations, supply chain improvements, and second-order opportunities related to the electric future. They emphasize the need for new technologies and infrastructure to support the growing electric vehicle market.

"percent level Precision on how much capacity you have left on that and you have intelligent software that can tell you this is how far you can go with that amount of battery capacity and oh by the way..."

23
39:00 - 42:01
3:01 duration492 words

Challenges in Supply Chain Management

The discussion highlights the significant challenges faced in supply chain management within the electric vehicle industry. Experts share their experiences with sourcing components and the impact of supply chain disruptions on production and delivery timelines.

"problems that are going to exist when all these kind of like the Marine industry is going electric and the aviation industry is going electric and the bus industry is going Electric yeah and I think i..."

24
42:01 - 43:01
0:59 duration194 words

Vertical Integration in Electric Boats

The discussion highlights the advantages of vertical integration in the electric boat industry. The speakers explain how integrating battery packs into the design of boats can create compelling products. They also touch on the evolution of components like DC-DC converters and the importance of developing shareable technologies across different applications.

"okay here's the here's a you know timing timing for what we're doing you look at the outlook on the Aerospace industry right now in particular aircraft manufacturing and the a lot of the major aircraf..."

25
43:01 - 44:50
1:48 duration317 words

Designing for Differentiation

In this segment, the speakers discuss the importance of designing electric vehicles and boats with unique advantages in mind. They emphasize the need to focus on core components that provide a competitive edge while avoiding unnecessary complexities. The conversation also touches on the challenges of creating battery packs tailored for different applications.

"aviation industry but I think the same is probably broadly applicable uh the new technologies the new companies are actually going to benefit from obtaining the focus of the established uh tier one ti..."

26
44:50 - 46:11
1:21 duration262 words

High Voltage Innovations

The speakers delve into the advancements in high voltage applications and the potential for low voltage components to adapt to higher voltage ranges. They discuss the benefits of reducing wire sizes and improving efficiency in electric systems, highlighting the ongoing evolution of technology in the electric vehicle space.

"be able to find components that factor across those I agree you want you want ballast right you want the Keel and the ballast to be replaced by battery packs I'm guessing yes yeah there's uh we actual..."

27
46:11 - 47:00
0:49 duration161 words

Electric Aircraft Certification

This segment focuses on the certification process for electric aircraft. The speakers explain how their electric plane is designed to meet existing aviation standards, allowing for easier integration into the current airspace system. They express optimism about the future of electric aviation and the potential for widespread adoption in the coming years.

"awesome for us maybe as a follow-up question there Mitchy mentioned whether or not you design your own battery packs how do you think about given that every single one of these planes both school buse..."

28
47:00 - 48:43
1:42 duration259 words

Building a Strong Brand in Electric Boats

The conversation shifts to the strategic approach of building a brand in the electric boat industry. The speakers discuss their aspirations for electric boats and the importance of establishing a technological moat. They emphasize the need for a talented engineering team and the role of cost efficiency in scaling production.

"that's exciting the way that we've been able to do that is by leveraging a lot of the research and development that has gone into the automotive industry over the past decade intelligently and and app..."

29
48:43 - 50:40
1:57 duration397 words

The Future of Electric Aviation

In this segment, the speakers share their vision for the future of electric aviation. They discuss the market needs and customer interactions that have shaped their aircraft design. The conversation highlights the reliability of electric planes and the potential for regular flights in the near future.

"engineering team and along the way we're driving down our cost of capital because boats are a very good business and the more boats we produce the more working capital that we have and that is those a..."

30
50:40 - 54:15
3:34 duration576 words

Differentiation and Execution in Electric Mobility

The final segment emphasizes the importance of execution in the electric mobility space. The speakers discuss the challenges of building compelling electric products and the significance of having a real order book. They highlight the need for effective bundling of services and the advantages of scale in establishing a competitive edge.

"flying regularly on electric airplanes I have I have aspirations to get my pilot's license and one of the things that clicked for me is the biggest risk to being a pilot and flying you know a Cessna i..."

31
54:00 - 55:02
1:02 duration174 words

Execution Over Ideas

The conversation shifts to the challenges of execution in the electrification space. The speakers agree that while ideas are abundant, the real difficulty lies in building products that meet market demands, particularly in the electric boat sector. They stress the importance of practical execution in realizing the vision of electrification.

"challenging bundle of services than operating a solar farm and uh and that there that's going to be that's going to continue to be difficult for others to uh you know to replicate absolutely my my syn..."

32
55:03 - 56:14
1:10 duration245 words

The Significance of a Strong Order Book

Gregory Davis emphasizes the importance of having a solid order book, showcasing real customer commitments as a sign of market validation. He shares that Eviation has surpassed $3.5 billion in pre-orders, indicating strong demand and customer engagement, which is crucial for the success of their electric aircraft.

"that Duncan just made which is very very important it's the order book right either having a real order book where you've gone and sat down with the customer and they've they've said yes we want your ..."

33
56:15 - 57:01
0:46 duration145 words

Market Participation in Electrification

The discussion highlights how the market is actively participating in the electrification movement. The panelists note that customers are ready to invest in electric solutions, driven by cost benefits and environmental considerations. This engagement is essential for the growth of the electrification industry.

"you tribute to this conversation is because we did do our research and check that all three of you have orders booked that was really important in terms of like you're actually on the ground you have ..."

34
57:02 - 58:07
1:05 duration202 words

Imagining a Future of Electric Transportation

The experts envision a future where most aircraft and boats are electric, leading to cleaner and quieter urban environments. They discuss the potential second and third-order effects of this shift, including improved air quality and enhanced recreational experiences on water, as well as the economic benefits for rural communities.

"quickly note that all three of you spoke to so many different opportunities remotes like there was technical modes there was operational modes there's even potentially like regulatory modes and so I t..."

35
58:08 - 1:01:32
3:24 duration479 words

Transforming Urban Life with Electric Mobility

The panelists explore how electric transportation can transform urban living. They discuss the potential for quieter cities, improved air quality, and the integration of renewable energy into the transportation ecosystem. This shift promises to enhance the quality of life in urban areas and reduce health issues related to pollution.

"some people don't necessarily think about is the next generation of boaters will not be allowed to use gas boats on our lakes and rivers they are very unpopular because they're huge polluters you know..."

36
1:01:33 - 1:03:02
1:29 duration295 words

A Day in the Future of Electric Travel

The conversation culminates in a vision of a perfect day enabled by electric transportation. The speakers imagine seamless travel experiences, from flying to visiting friends on electric boats, highlighting the convenience and environmental benefits of electrification. This optimistic outlook underscores the potential of technology to enhance connectivity and quality of life.

"able to take a 10-minute trip to your nearest airport get on an airplane and fly for an hour to do a day trip that previously would have been an overnight trip or a trip to an airport half an hour 45 ..."

37
1:03:03 - 1:04:10
1:07 duration226 words

Closing Thoughts on Electrification

As the discussion wraps up, the panelists reflect on the inspiring developments in their respective fields of electric aviation, marine, and ground transportation. They express excitement about the future and the collaborative efforts needed to bring these innovations to fruition, emphasizing the importance of staying connected in this evolving industry.

"summer day in my head where you wake up you go to your nearby airport you fly to your friend who lives near a lake you go out on an electric boat after that you go to a concert powered by a an electri..."