Multinational car manufacturer Stellantide announced that it is extending an earlier partnership with Archer Aviation, adding its manufacturing experience to help produce the latter company’s electric vertical take-off and landing (eVTOL) aircraft. Baptized “Midnight”, this eVTOL is now planned to be mass produced on American soil.
You have probably heard of Stellantis ($STLA), but Archer Aviation might be a new name for you. Archer ($ACHR) is a Santa Clara, California-based eVTOL developer that aims to deploy 6,000 aircraft by 2030. The company specializes in the design and development of electric vertical take-off and landing aircraft, particularly for use in urban air mobility (UAM) networks such as air taxi services. .
Since its inception in 2018, Archer has established working relationships with United Airlines, Stellantis and the United States Air Force. In 2022, the company completed the preliminary design of its Midnight eVTOL, which was unveiled last December.
Additionally, Archer intends to manufacture the Midnight aircraft at its planned factory in Covington, Georgia. According to today’s news, Stellantis is opening its portfolio to help erect the US facility and intends to bring its manufacturing know-how to Georgia to get eVTOLs off the ground next year.
Stellantis will help build eVTOLs with a range of 100 miles
According to Press release from Stellantis today, it will extend its partnership with Archer Aviation by providing up to $150 million in equity at developer eVTOL’s discretion through 2024, subject to the achievement of certain commercial milestones this year.
Stellantis said it also intends to increase its stock through future purchases of Archer stock on the open market, increasing its overall long-term investment in the company and its technology. Speaking of eVTOL technology, Stellantis doesn’t intend to just float Archer’s development.
Instead, the global automaker will also partner with Archer to commission the Georgia plant, acting as the exclusive contract manufacturer of the latter of the midnight eVTOLs as early as 2024. Stellantis hopes to provide expertise and personnel in addition to capital to help Archer scale faster and meet its delivery goals. Stellantis CEO Carlos Tavares spoke about the expanded partnership and the company’s planned launch into eVTOL production:
We have worked closely with Archer over the past two years, and I am continually impressed with their ingenuity and unwavering commitment to delivery. Deepening our partnership with Archer as a strategic investor with plans to grow our shareholding demonstrates how Stellantis pushes the boundaries to deliver sustainable mobility freedom, from the road to the sky. Supporting Archer with our manufacturing expertise is another example of how Stellantis will lead the world.
The Midnight eVTOL itself is designed to carry four passengers plus a pilot with an expected payload capacity of over 1,000 pounds. It can travel 100 miles on a single charge, but has been optimized for consecutive short trips of around 20 miles, charging around 10 minutes between trips – perfect for air taxi transportation in the UAM segment.
Archer Aviation believes it can be the first company to bring a viable, certified eVTOL to market, and the backing of a major manufacturing company like Stellantis should certainly help. We’ll be keeping an eye on this growing partnership as the Georgia facility builds and hopefully midnight eVTOLs will follow soon. You can check out the official debut of the Archer Midnight eVTOL below:
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