Stellantis to build electric aircraft with Archer Aviation

Stellantis (STLA) and Archer Aviation (ACHR) announced that they have agreed to significantly expand their partnership by joining forces to manufacture Archer’s flagship electric vertical take-off and landing aircraft, Midnight. Stellantis will work with Archer to stand up Archer’s recently announced manufacturing facility in Covington, Georgia at which the companies plan to begin manufacturing the Midnight aircraft in 2024. Midnight is designed to be safe, sustainable, quiet and, with its expected payload of over 1,000 pounds, can carry four passengers plus a pilot. 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 approximately 10 minutes in-between. The goal is for Stellantis to mass produce Archer’s eVTOL aircraft as its exclusive contract manufacturer. As a further sign of its commitment, Stellantis will provide up to $150M in equity capital for potential draw by Archer at its discretion in 2023 and 2024, subject to achievement of certain business milestones which Archer expects to occur in 2023. Stellantis also intends to increase its strategic shareholding through future purchases of Archer stock in the open market. These actions, along with the other elements of this expanded partnership, will enable Stellantis to become a long-term, cornerstone investor in Archer.