The startup plans to manufacture 650 Midnight aircraft annually.

Archer Aviation has announced an agreement with Stellantis, where the automaker will cover up to $370 million of labor-related costs to support the production of Archer's electric vertical take-off and landing aircraft (eVTOL) Midnight - designed as air taxi for rich customers - in the United States.

This capital will enable Archer Aviation to manufacture at least 650 units annually. As of the end of June, Archer had cash and cash equivalents totaling $360 million, far less than it needs to push with the project.

Recently, Archer Aviation secured an additional $230 million in equity capital from investors, including Stellantis and United Airlines. The Midnight aircraft, designed to carry four passengers and a pilot with a range of 100 miles (161 km), will be produced in Covington, Georgia. The aircraft is intended for short trips of around 20 miles with a quick charging time of approximately 10 minutes between flights.

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Stellantis, Archer's largest shareholder, will receive shares in the company quarterly, based on the labor costs incurred.

Stellantis CEO Carlos Tavares mentioned that affordable air taxis align with the automaker's goal of "finding innovative solutions for accessible mobility."

The eVTOL aircraft industry faces challenges such as battery and infrastructure issues and requires significant funding to scale up production. Additionally, it has yet to achieve certification to carry passengers in the U.S. Investor interest in American eVTOL companies has waned, with Archer's shares down 35% while rival Joby Aviation's shares losing down 22% this year.

Archer revealed that aviation firm Future Flight Global plans to purchase up to 116 Midnight aircraft worth $580 million, with an initial deposit already made.

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Archer also announced plans to launch an air mobility network in Los Angeles, expected to begin operations as early as 2026. This network will allow passengers to travel from nearby vertiports to their destinations within 10 to 20 minutes using a Midnight aircraft. However, the company did not disclose the investment size for the Los Angeles project.

Stellantis was formed in 2021 from the merger of the Italian–American conglomerate Fiat Chrysler Automobiles and the French PSA Group. It currently has14 car brands in its portfolio and reported for 2023 a revenue of almost $190 billion (and $18.6 billion in net income).

Archer Aviation was founded in 2018 and is based in San Jose, California. Its first product was a two-passenger fully electric vertical takeoff and landing aircraft with 12 electric propellers, called Maker.

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