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As part of a broadened partnership, the world’s largest automaker Stellantis will mass produce an electric vehicle take-off and landing aircraft for Archer Aviation and grant the startup company, which recently went public, access to an additional $150 million in funding over the following two years.
The deal would make Stellantis the only contract manufacturer for Archer’s Midnight eVTOL aircraft, as announced on Wednesday during CES 2023 in Las Vegas.
In 2020, Stellantis and Archer Aviation began a relationship that gave Archer Aviation access to its extensive supply chain and other knowledge. A collaborative arrangement between Stellantis and the aviation company was expanded in February 2021. In the same month, Archer revealed plans to merge with special purpose acquisition firm Atlas Crest Investment Corp. in order to go public.
The information released on Wednesday goes much beyond a partnership. Along with capital and manufacturing knowledge, Stellantis is also assisting Archer with the construction of its recently announced production site in Covington, Georgia, according to the automaker. In 2024, the plant will begin making the Midnight aircraft, according to the firms.
The Midnight aircraft, with a range of 100 miles, is made for urban settings, where a typical trip will be 20 miles or less. In addition to the pilot, the aircraft has a payload capacity of more than 1,000 pounds and provides room for four additional passengers.
The Federal Aviation Administration took a step toward commercializing urban air mobility in December by publishing the proposed Airworthiness Criteria for the Midnight aircraft in the Federal Register. According to Archer, it aims to utilize Midnight as part of its Urban Air Mobility network, which is set to become live in 2025, once it receives FAA certification in late 2024.
By making more open market purchases of stock in the future, Stellantis said it also intends to grow its strategic ownership stake in Archer.
