Stellantis has agreed to manufacture Archer Aviation’s eVTOL aircraft, Midnight, and will provide up to $150 million to accelerate production.
Stellantis will work with Archer at its facility in Covington, Georgia, at which the companies plan to begin manufacturing the Midnight aircraft in 2024. The partnership will leverage each company’s strengths to bring Midnight to market, with Archer’s team of eVTOL, electric powertrain, and certification experts, combining with Stellantis’ manufacturing technology and expertise, experienced personnel and capital.
According to Archer, the partnership is intended to enable the rapid scaling of aircraft production to meet commercialization plans, while allowing the company to strengthen its path to commercialization by helping avoid hundreds of millions of dollars of spending during the manufacturing ramp up phase. The goal is for Stellantis to mass produce Archer’s eVTOL aircraft as its exclusive contract manufacturer.
The $150 million in equity capital from Stellantis will be available 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 is also expected to increase its strategic shareholding through future purchases of Archer stock in the open market, enabling the company to become a long-term, cornerstone investor.
Carlos Tavares, Stellantis CEO, said: “We’ve been working closely with Archer for the past two years, and I am continually impressed by their ingenuity and unwavering commitment to deliver. 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.”
Adam Goldstein, founder and CEO of Archer, added: “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. Our two companies are taking these important steps together to realize a once-in-a-generation opportunity to redefine urban transportation.”