Stellantis is “significantly” expanding their partnership with Archer Aviation as the two companies will work together to put the Midnight into production.
The Midnight is an electric vertical take-off and landing (eVTOL) aircraft, which has been designed to carry four passengers and a pilot. While the model only has 100 miles (161 km) of range, the companies noted the aircraft has been “optimized for back-to-back short distance trips of around 20 miles (32 km), with a charging time of approximately 10 minutes in-between.”
Under the terms of the latest agreement, Stellantis will contribute “advanced manufacturing technology and expertise, experienced personnel, and capital to the partnership.” The automaker will also work with Archer to “stand up” a manufacturing facility in Covington, Georgia where the Midnight is slated to go into production in 2024.
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More importantly, the announcement revealed Stellantis’ goal is to “mass produce Archer’s eVTOL aircraft as its exclusive contract manufacturer.” As a result, Stellantis is becoming an aircraft manufacturer.
If that wasn’t interesting enough, Stellantis will provide up to $150 (£124 / €141) million in equity capital to Archer. The latter firm can draw on those funds, at its discretion, in 2023 and 2024, but the money is contingent on them hitting certain milestones. Furthermore, Stellantis intends to purchase Archer stock in the future.
Stellantis said the moves will “enable the rapid scaling of aircraft production to meet Archer’s commercialization plans, while allowing Archer to strengthen its path to commercialization by helping it avoid hundreds of millions of dollars of spending during the manufacturing ramp up phase.” Stellantis CEO Carlos Tavares added, “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.”
