Stellantis to Build US Firm Archer’s Air Taxi

Automaker giant Stellantis and Archer Aviation announced an agreement to significantly expand their partnership by joining forces to manufacture Archer’s flagship electric aircraft, Midnight. 

“Deepening our partnership with Archer as a strategic investor with plans for growing our shareholding demonstrates how Stellantis is pushing the boundaries to provide sustainable freedom of mobility, from the road to the sky. Supporting Archer with our manufacturing expertise is another example of how Stellantis will lead the way the world moves,” said Carlos Tavares, CEO, Stellantis.

The vertical take-off and landing (eVTOL) Midnight aircraft will carry four passengers plus a pilot thanks to its expected payload of over 1,000 pounds. With a range of 100 miles, Midnight is optimized for back-to-back short distance trips of about 20 miles, with a charging time of approximately 10 minutes in-between.

This unique partnership will combine Archer’s team of eVTOL, electric powertrain and certification experts with Stellantis’ advanced manufacturing technology, expertise, experienced personnel and capital. The objective is to enable the rapid scaling of aircraft production to meet Archer’s commercialization plans, avoiding hundreds of millions of dollars of spending during the manufacturing ramp up, said both companies.

In addition, Stellantis will provide up to US$150 million in equity capital for potential draw by Archer at its discretion in 2023 and 2024, subject to achievement of certain business milestones. The automaker said it expects to become a long-term, cornerstone investor in Archer. After the partnership announcement, Archer’s shares were up 17 percent, reported Reuters.

“Stellantis’ continued recognition of Archer’s progress toward commercialization, and today’s commitment of significant resources to build the Midnight aircraft with us, places Archer in a strong position to be first to market,” said Adam Goldstein, Founder and CEO, Archer. “Our two companies are taking these important steps together to realize a once-in-a-generation opportunity to redefine urban transportation.”

Aerospace and automotive companies and suppliers around the world continue betting on urban air mobility (UAM) to eventually become commonplace. Recently, Israel-based startup AIR announced that it completed the first successful unmanned test flight of its flying vehicle prototype, a milestone that will help it reach the market within the next two years, reported MBN.

While UAM remains a large challenge, it is also a megatrend, said to MBN Rogerio Botelho, Director of Program Management, Honeywell Aerospace: “Honeywell is investing to develop new technologies for this market, which is new for everyone. While we do not know exactly when it will arrive, we are certain that it will become a reality.”