Stellantis to help build Archer’s Midnight aircraft and provide up to $150 million in equity capital
Archer Aviation and Stellantis N.V have agreed to significantly expand their partnership, with both companies joining forces to manufacture Archer’s eVTOL aircraft Midnight.
Stellantis has been a strategic partner to Archer since 2020 through various collaboration initiatives, and an investor since 2021. The global automotive manufacturer will contribute advanced manufacturing technology and expertise, experienced personnel and capital to enable the aircraft manufacturing.
As a further sign of its commitment, 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. These actions, along with the other elements of this expanded partnership, will enable Stellantis to become a long-term, cornerstone investor in Archer.
Adam Goldstein, founder and CEO of Archer, said: “Stellantis’ continued recognition of Archer’s progress toward commercialisation, 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 realise a once-in-a-generation opportunity to redefine urban transportation.”
Stellantis N.V. is one of the world’s leading automakers and a mobility provider. Its brands include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys.
During the time working together, Archer has leveraged Stellantis’ deep manufacturing, supply chain, and design expertise in connection with Archer’s efforts to design, develop, and commercialise its eVTOL aircraft.
Stellantis’ contribution will strengthen Archer’s path to commercialisation by helping it avoid hundreds of millions of dollars of spending during the ramp-up phase. The goal is for Stellantis to mass produce Archer’s eVTOL aircraft as its exclusive contract manufacturer
Carlos Tavares, Stellantis CEO, added: “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.”
Stellantis will work with Archer to stand up Archer’s recently announced manufacturing facility in Covington, Georgia, where the companies plan to begin manufacturing the Midnight aircraft in 2024.
Unveiled in November 2022, Midnight is designed to have an expected payload of over 1,000 pounds, transporting four passengers plus a pilot. With a range of 100 miles, the aircraft will provide back-to-back short distance trips of around 20 miles, with a charging time of approximately 10 minutes in-between.