Stellantis and Archer Aviation Inc announced today that they would be expanding their partnership in a big way. The companies will work together to make Archer's most important aircraft, the Midnight eVTOL (electric vertical take-off and landing) airplane.
Stellantis will help Archer build the recently announced manufacturing facility in Covington, Georgia, where the Midnight aircraft will be made starting in 2024. The Midnight eVTOL is said to be safe, sustainable, quiet, and able to carry four people and a pilot, with an expected payload of over 454 kilograms. Midnight has a range of about 160 kilometers (100 miles). It is best for short flights of about 32 kilometers (20 miles) and takes about 10 minutes to charge.
This unique partnership between the two companies will build on and take advantage of the strengths of each. Archer brings its world-class team of experts in eVTOL, electric propulsion, and certification to the partnership, and Stellantis brings its advanced manufacturing technology and expertise, experienced staff, and capital. This should make it easy to quickly increase the number of planes being made to meet Archer's plans for commercialization. At the same time, Archer can speed up the process of going on the market by avoiding spending hundreds of millions of dollars during the production ramp-up phase. The goal is for Stellantis to be the only company to make Archer's eVTOL aircraft in large numbers.
Stellantis will give Archer up to $150 million in equity that Archer can use however it wants in 2023 and 2024 as another sign of its commitment. This depends on Archer meeting specific business goals expected to be reached in 2023. Stellantis also plans to buy more Archer stock on the open market to add to its strategic holdings. With these steps, which go along with the other parts of this expanded partnership, Stellantis will be able to become an anchor investor in Archer for the long term.
"We've worked closely with Archer for the past two years, and I'm always impressed by their creativity and dedication," said Carlos Tavares, CEO of Stellantis. He was talking about how Stellantis is pushing the limits to make sustainable transportation possible on the ground and in the air. Stellantis will shape the way people move in the future by helping Archer with its manufacturing."
"Stellantis's continued acknowledgment of Archer's progress toward commercialization and today's promise to work with us to build the Midnight airplane with a lot of money puts Archer in a good position."
"These are important steps our two companies are taking together to take advantage of a unique chance: to change the way urban transportation works."
Since 2020, Stellantis has been a strategic partner with Archer through several joint projects. Since 2021, Stellantis has also been an investor. During that time, Archer used Stellantis's manufacturing, supply chain, and design expertise to help design, develop, and sell its eVTOL aircraft. @via Archer.
