Archer Aviation, a Silicon Valley-based company, which has been actively invested in making flying taxis, has teamed with automotive company Stellantis. Stellantis have pumped $150 Million into the Archer for producing its second prototype air taxi, Midnight.
Stellantis had previously been involved with the development of Archer’s electric vertical take-off and landing (eVTOL) aircraft, but the companies disclosed on 4 January that they “agreed to significantly expand their partnership” by producing Midnight together.
Stellantis’s motivation behind investing so much in Archer is to mass-produce Archer’s aircraft as its exclusive contract manufacturer, and become a “cornerstone investor in Archer”.
Though critiques are arguing that investing $150 million into a loss-making flying-car company was a short-thought decision from the carmaker. Stellantis’s Chief Executive Carlos Tavares has put a lot on stakes by investing such a heavy about considering a looming recession and growing competition from Chinese giants. Yet the auto group’s deal with $513 million Archer Aviation looks like a savvy bet.
Stellantis owned a small stake in Archer previously too but now the carmaker is acting more like a venture capitalist than a corporate raider. Stellantis has committed to buying new shares when the flying-car maker hits undisclosed milestones.
Stellantis has also locked a deal to build Archer’s Midnight vehicle, which looks like a cross between a helicopter and a small plane. It’s a relatively low-risk way of getting exposure to a promising but still uncertain sector.
Flying taxis may one day rule the skies, like in Ridley Scott’s film “Blade Runner”, but it’s too soon to tell whether they’ll be cheap enough for many travelers, or whether governments will bless them. Carlos Tavares, Stellantis’ CEO said:
“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.”
Now let’s talk about the product under discussion, the vertical take-off, and landing (eVTOL) Midnight aircraft. It can carry four passengers and a pilot with a range of 100 miles (161 km), and will be manufactured in Covington, Georgia, from 2024, with a production target of 2,300 aircraft annually, Archer and Stellantis said in a joint statement.
The aircraft is designed for back-to-back short-distance trips of around 20 miles, with a charging time of approximately 10 minutes in-between.
“The goal is for Stellantis to mass produce Archer’s eVTOL aircraft as its exclusive contract manufacturer,”
Archer first flew its two-seat demonstrator aircraft in December 2021 which was named Maker by the company. Last month, Archer claimed that it will build a 32,516sq m (350,000sq ft) manufacturing facility in Covington, Georgia, which is set for completion in the first half of 2024. That same year, Archer and Stellantis hope to begin manufacturing Midnight aircraft, Archer said on 5 January.
The company intends to initially produce up to 650 aircraft annually, but the facility could support up to 2,300 per year with a potential expansion. Archer has already received a pre-order from US carrier United Airlines for 200 vehicles.
The plan is for these aircraft to fly between New York and Newark Airport initially, then expand to other cities such as Los Angeles, Miami, and San Francisco where United has a significant presence.
The auto industry is well ahead in battery design but the weight of current-generation batteries is seen as a limiting factor for the range and payload of the new vehicles.
In November, the European planemaker Airbus forged a partnership with French carmaker Renault to develop a new generation of electric batteries and hybrid technology for cars and planes.
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