COVINGTON, Ga. — Dutch automaker Stellantis will help build Archer Aviation Inc.'s new Covington factory and finance production of Archer's new electric vertical takeoff and landing (eVTOL) aircraft designed for urban travel.
Archer, a California-based company, said it will create 1,000 jobs in Covington in its first manufacturing facility for commuter and cargo-carrying aircraft for low-altitude use in urban areas.
Stellantis will provide up to $150 million in equity capital for potential use by Archer in 2023 and 2024 — subject to meeting certain business milestones Archer expects to reach this year, they announced this week.
The two companies Wednesday, Jan. 4, said they agreed to significantly expand their partnership by joining forces to manufacture Archer’s Midnight eVTOL at its manufacturing facility planned for a site adjacent to Covington Airport.
"This combination is intended to enable the rapid scaling of aircraft production to meet our commercialization plans," Archer officials said in a news release.
Archer began operations in 2018 and is working to certify its first production aircraft, Midnight, with the Federal Aviation Administration in late 2024 and launch service in 2025, the company said.
It announced in November it planned a 500,000-square-foot complex on 96 acres of vacant, city-owned land on the western edge of Covington Municipal Airport.
Hiring was expected to begin in late 2023 and the facility is slated to open in the first three months of 2024 on the site between Williams and Airport roads.
Adam Goldstein, founder and CEO of Archer, said, “Stellantis’ continued recognition of Archer’s progress toward commercialization, and today’s commitment of significant resources to build the Midnight aircraft with us, places Archer in a strong position to be first to market.
"Our two companies are taking these important steps together to realize a once-in-a-generation opportunity to redefine urban transportation,” Goldstein said.
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," Archer officials said in a news release.
"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."
Fiat Chrysler Automobiles NV merged with French automaker Groupe PSA to become Stellantis in 2021.
Stellantis has been a strategic partner to Archer since 2020 through various collaboration efforts. It became an investor in Archer in 2021 through its $328 million Stellantis Ventures arm, The Detroit News reported.
The newly announced partnership will allow Archer to pair its eVTOL, electric powertrain and certification experts with Stellantis' knowledge of advanced manufacturing technology and expertise, experienced personnel and capital to manufacture the new aircraft.
"This combination is intended to 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," the release stated.
"The goal is for Stellantis to mass produce Archer’s eVTOL aircraft as its exclusive contract manufacturer."
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, the news release stated.
“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,” said Stellantis CEO Carlos Tavares.
“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. Supporting Archer with our manufacturing expertise is another example of how Stellantis will lead the way the world moves.”
