Stellantis to develop electric aircraft with Archer Aviation

MANILA: Stellantis NV and Archer Aviation Inc. announced their agreement to considerably expand their collaboration by working together to produce Midnight, Archer's flagship electric vertical take-off and landing (eVTOL) aircraft.

Stellantis will partner with Archer in establishing Archer's recently announced manufacturing facility in Georgia, USA, where the companies plan to start the production of the Midnight aircraft in 2024. With an anticipated payload of over 1,000 pounds, Midnight is made with safety, sustainability, and serenity in mind. It can also accommodate four passengers plus a pilot. Midnight's range of 100 miles makes it ideal for back-to-back short-distance trips of under 20 miles, with a charging time of around 10 minutes in-between.

In order to bring the Midnight aircraft to the market, this unprecedented partnership in the urban air mobility sector will take advantage of the strengths and competencies of each company. While Stellantis will contribute advanced manufacturing expertise, skills, and resources to the partnership, Archer will bring its top-notch team of eVTOL, electric powertrain, and certification experts. With this combination, Archer hopes to fulfill its commercialization goals by rapid scaling of aircraft production. At the same time, Archer aims to strengthen its route to commercialization by avoiding spending hundreds of millions of dollars on the production ramp-up phase. As Archer's exclusive contract manufacturer, Stellantis will mass produce the eVTOL aircraft.

As a further demonstration of its commitment, Stellantis will offer up to $150 million in equity capital that Archer may decide to use in 2023 and 2024, subject to the fulfillment of specific business milestones that Archer anticipates in 2023. Stellantis also plans to grow its strategic holdings by making additional open market purchases of Archer shares in the future. With these efforts, together with the other components of the expanded collaboration, Stellantis will be able to become a cornerstone investor in Archer over the long run.

“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 Chief Executive Officer Carlos Tavares stated.

“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,” Archer Aviation Inc. Founder and Chief Executive Officer Adam Goldstein said. “Our two companies are taking these important steps together to realize a once-in-a-generation opportunity to redefine urban transportation.”

Since 2020, Stellantis has worked with Archer in various collaboration initiatives as a strategic partner, and since 2021, it has also invested in Archer. Archer has taken advantage of Stellantis' extensive manufacturing, supply chain, and design expertise over this time in order to support the design, development, and commercialization of its eVTOL aircraft.

Photos from Stellantis NV and Archer Aviation Inc.

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