The last and probably most futuristic decarbonization solution is urban air mobility. What does this mean? It’s an air-taxi. A flying car. An urban electric jet. George Jetson and Hanna Barbera are the original investors. You might be laughing but the investors backing three urban air mobility companies that recently IPOed as SPACs highlighted below are no joke. In addition, Morgan Stanley estimates Urban Air Mobility to be a $1.5 to $3.0 trillion industry by 204011.
is headquartered in Palo Alto, Archer is developing a full scale electric vertical takeoff and landing (eVTOL) jet that is capable of traveling 60 miles at 150 miles per hour. Archer wants to reduce traffic congestion offering customers the fastest mode of transportation. For example, the commute from JFK to downtown Manhattan is 7 minutes in an Archer electric plane. Pricing is expected to be cheaper than Uber and the all-electric plane means there are zero emissions. Archer has partnered with United Airlines to deliver its eVTOL jet starting in 2024. Ken Moelis, founder of Moelis & Company is the Chairman of the Board.
is headquartered in Santa Cruz, CA. Joby’s electric plane transports four passengers up to 150 miles at 200 miles per Reid Hoffman, founder of LinkedIn, is an investor and board member of Joby. Joby’s investor base includes Toyota, Intel, jetBlue, and Capricorn. Joby has a first mover advantage already receiving the first military airworthiness approval for an eVTOL jet. Joby expects revenue beginning in 2025.
offers the highest capacity (7-seater) and lowest noise eVTOL jet in the Lilium’s investor base includes global technology investors including Tencent and Baillie Gifford. For $65, Lilium expects its jet can transport customers from JFK to NYC. For $200, Lilium’s jet is expected to provide service to the Hamptons from NYC. Lilium forecasts is 7-seat jet to cost $2.5 million while projecting $5 million of revenue per jet per year based on earning $15,000 in revenue per jet per day with each jet traveling 1,500 miles per day. Lilium is also working on a 16-seat jet as well. Revenue from this business model is expected in 2024.
proposes an eVTOL jet with a capacity of 5 people with zero carbon dioxide emissions that can travel 100+miles at an operating cost of $1.06 per seat The investor base of Vertical Aerospace includes Microsoft, Rolls-Royce, Honeywell, and American Airlines. American Airlines and Virgin Atlantic have conditional pre-orders for up to 300 aircrafts with a targeted delivery date in 2024.
The high energy density and lightweight nature of lithium batteries has helped to decarbonize the transportation and utility sectors. In the transportation sector, battery storage has propelled EV’s from a concept to approximately 2% of the global electric feet today. In the utility sector, battery storage technology is used
when the intermittent energy sources like wind and solar are unavailable expanding the use of wind and solar generation. In general, lithium-ion batteries are able to store electricity for up to 4 hours. The world’s largest battery energy storage system is in Monterey County California owned by Vistra. The Moss landing energy storage facility is connected to power grid and began operating on December 11, 2020 with capacity of 300 MW/1200 MWH. Moss uses 4,500 stacked battery racks each with 22 individual battery modules.
Currently, lithium-ion is the primary chemistry used for battery storage accounting for 93% of storage capacity. Some scientists believe that lithium-ion has reached its maximum potential. In addition, expanded use of lithium-ion batteries increase the need of lithium and cobalt. Chile, Australia, and China account for 85% of the lithium supply and 70% of global cobalt output comes from the Republic of Congo12.
Technological advancements in battery storage are the most significant energy technology that could change the game accelerating the pace of decarbonization. Bloomberg New Energy Finance (BNEF) forecasts energy storage market to grow to 1095 GW and 2,850 GWh by 2040 requiring $660 billion in investment over the next two decades13. Improved battery technology reduces battery anxiety likely increasing the adoption rate of EV transportation. In addition, larger battery capacity increases the amount of time that energy can be stored which increases use of solar and wind for electricity.
Table 3 below highlights the former SPACs that are looking to capture market share in the growing battery storage market using new and existing battery chemistries including: