Stellantis and Archer Aviation Inc. have agreed to join forces to manufacture Midnight, Archer’s flagship electric vertical take-off and landing (eVTOL) aircraft capable of carrying five people as far as 100 miles.
Stellantis will provide up to $150 million in equity capital for potential draw by Archer at its discretion in 2023 and 2024, subject to achievement of certain business milestones, which Archer expects to occur in 2023.
Stellantis also intends to increase its strategic shareholding through future purchases of Archer stock in the open market, the company said. These actions, along with the other elements of this expanded partnership, will enable Stellantis to become a long-term, cornerstone investor in Archer, it added.
Midnight is designed to be safe, sustainable, quiet and, with its expected payload of over 1,000 pounds, can carry four passengers plus a pilot. The e-aircraft is optimized for back-to-back short distance trips of around 20 miles, with a charging time of approximately 10 minutes in-between.
Stellantis will work with Archer to stand up Archer’s recently announced manufacturing facility in Covington, Georgia at which the companies plan to begin manufacturing the Midnight aircraft in 2024.
“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,” Stellantis CEO Carlos Tavares said.
This unique partnership in the urban air mobility industry will leverage each company’s respective strengths and competencies to bring the Midnight aircraft to market. Archer brings its team of eVTOL, electric powertrain and certification experts while Stellantis will contribute advanced manufacturing technology and expertise, experienced personnel, and capital to the partnership.
“Our two companies are taking these important steps together to realize a once-in-a-generation opportunity to redefine urban transportation,” Adam Goldstein, founder and CEO of Archer said.
Stellantis has been a strategic partner to Archer since 2020 through various collaboration initiatives, and as an investor since 2021. During this time, Archer has leveraged Stellantis’ deep manufacturing, supply chain, and design expertise in connection with Archer’s efforts to design, develop, and commercialize its eVTOL aircraft.