Stellantis isn't just keeping its all-electric transportation aspirations on the ground. The automaker says it's going to build an all-electric air taxi with its partner Archer Aviation. The recent announcement marks a significant expansion of an existing partnership between the two companies - as they join forces to manufacture Archer’s flagship electric vertical take-off and landing (eVTOL) aircraft, Midnight.
Midnight
Archer unveiled its first production aircraft, Midnight, in November 2022, saying it's designed to be safe, sustainable, quiet and carry four passengers, plus a pilot. It also has an expected payload of over 1,000 pounds. The company says it's designed to be a low cost alternative competitive with a ground based ride share. The company estimates that with a range of 100 miles, Midnight is optimized for back-to-back short distance trips of around 20 miles, with a charging time of about 10 minutes in-between.
Timeline
Production is expected to begin in 2024 in Georgia. Last fall, Archer said it was working to certify Midnight with the FAA in late 2024 and that it planned to launch its urban air mobility (UAM) network in 2025.
Partnership Details
Stellantis says it will contribute advanced manufacturing technology and expertise, experienced personnel and capital to enable the aircraft manufacturing at a facility in Covington, Georgia. For its part, Archer will brings its world-class team of eVTOL, electric powertrain and certification experts. The idea is to enable the rapid scaling of aircraft production to meet Archer’s commercialization plans. The partnership will allow Archer to scale up while also avoiding hundreds of millions of dollars of spending during the manufacturing ramp up phase.
Stellantis says the goal is to become the mass producer of Archer’s eVTOL aircraft as its exclusive contract manufacturer. It will provide up to $150 million of equity capital for potential draw by Archer at its discretion in 2023 and 2024 (subject to certain business milestones.)
Photo Credit: Stellantis.
Stellantis says it also intends to become a long-term cornerstone investor in Archer by increasing its strategic shareholding through future purchases of Archer stock in the open market.
“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 Carlos Tavares, Stellantis CEO. “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’ 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,” said Adam Goldstein, founder and CEO of Archer. “Our two companies are taking these important steps together to realize a once-in-a-generation opportunity to redefine urban transportation.”
Partnership History
Stellantis says it's been been a strategic partner to Archer since 2020 through various collaboration initiatives, and as an investor since 2021. During this time, Archer has leveraged Stellantis’ deep manufacturing, supply chain, and design expertise in connection with Archer’s efforts to design, develop, and commercialize its eVTOL aircraft.
Photo Credit: Stellantis.