Stellantis Invests Additional $400 Million in Archer to Boost eVTOL Aircraft Production

Stellantis is deepening its partnership with Archer Aviation by investing an additional $400 million to scale the production of Archer's Midnight eVTOL aircraft. This funding will support Archer's goal of producing 650 aircraft annually at its Georgia facility by 2030.

Stellantis Increases Investment in Archer Aviation, Aiming to Scale eVTOL Aircraft Production by 2030

Stellantis is increasing its investment in Archer Aviation, a Silicon Valley-based company that develops electric vertical take-off and landing (eVTOL) aircraft.

In a recent report by Teslarati, Archer Aviation will receive an additional $400 million from Stellantis. The legacy automaker clarified that the supplementary funding will “help scale Archer’s Midnight manufacturing to 650 aircraft annually through an obligation to cover manufacturing labor costs as well as certain capital expenditures at Archer’s Georgia manufacturing facility through 2030.”

Archer unveiled its Midnight eVTOL aircraft in Palo Alto, California, in November 2022. It is intended to be environmentally friendly, secure, and silent. It can accommodate four passengers and one pilot and has a payload capacity of more than 1,000 pounds.

Stellantis has invested $300 million in Archer thus far, in addition to the $400 million it recently disclosed. In the second quarter, Archer secured $230 million in equity from institutional and long-term investors. The developer of eVTOL aircraft intends to achieve commercialization by the beginning of 2025.

The company is well-positioned to achieve its commercialization objectives, as indicated by Archer's Chief Executive Adam Goldstein, who estimates its indicative book is $6 billion.

“This has been one of Archer’s most productive quarters yet,” Goldstein commented about Q2 2024.

“From Midnight’s first transition flight, to the progress we’ve made on the build-out of high-volume manufacturing facilities alongside Stellantis, to the commercial progress we’re making with Southwest, United, and more—we are working tirelessly to enable commercial operations all over the world,” added Goldstein.

Stellantis Expands Partnership with Archer Aviation to Lead in eVTOL Manufacturing and Mobility Solutions

Last year, Stellantis disclosed an agreement with Archer Aviation to construct the all-electric Midnight electric vertical take-off and landing (eVTOL) aircraft. The Archer partnership will enable the legacy automaker to access a new market.

In 2023 and 2024, Stellantis intends to allocate $150 million in equity capital to Archer for its discretionary use. The automaker plans to augment its ownership of Archer by purchasing stock on the open market.

Stellantis will provide Archer with its sophisticated manufacturing technology expertise and capital. Archer's exclusive contract manufacturer for the eVTOL aircraft is the automaker's objective. Stellantis also intends to assist Archer in expanding its recently announced manufacturing facility in Covington, Georgia. Archer wants to commence the production of Midnight by 2024.

“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,” said Stellantis CEO Carlos Tavares.

“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,” Tavares continued.