COVINGTON, Ga. – Key terms for a manufacturing deal between aircraft company Archer Aviation and automaker Stellantis have been announced.

According to Archer Aviation’s Q2 2024 newsletter released on Aug. 8, Stellantis will contribute up to $400 million that will assist in covering manufacturing labor costs and certain capital expenditures as Archer’s new facility in Covington. 

The deal calls for $370 million to be directly funded toward the manufacturing labor, while $20 million is expected to go toward managing capital expenditures, according to the newsletter. The deal will last through 2030.

The manufacturing deal will also help assure the yearly production of up to 650 Archer Midnight aircrafts, which will take place in Covington.

In exchange, Stellantis will receive Archer shares on a rolling quarterly basis based on total labor costs incurred in a particular quarter as well as Archer share prices, according to the newsletter.

Construction is nearly complete of the 350,000 square foot facility located at 249 Williams St. Chief people and partnerships officer Tosha Perkins confirmed to The Covington News last month that the facility is expected to be open by October.

Stellantis has previously invested around $300 million into Archer, with $55 million invested in July.

Founder and CEO of Archer Adam Goldstein took to X to share his thoughts on the expansion of the partnership between Stellantis and the aircraft company.

“This expansion of our partnership puts us in an ideal place where we can do what we do best, " Goldstein said, "which is developing advanced aircraft for electrification of  aviation and commercializing the industry."