Archer Aviation Partners With Anduril Industries To Develop Next-Generation Military Aircraft

Archer Aviation, an electric aviation startup, has signed an exclusive deal with Anduril Industries, a defense contractor founded by Palmer Luckey, to jointly develop next-generation aircraft for the military. The deal also announced a new funding round of $450 million to help propel its defense ambitions.

The first product will be a hybrid propulsion vertical takeoff and landing (VTOL) aircraft that will serve as the basis for the companies’ bid for a contract with the US Department of Defense. Archer is formalizing its efforts to become an aircraft supplier to the military through the creation of a new internal division called Archer Defense.

Archer has been racing to finalize the government certification process needed to get the necessary government approvals for its electric vertical takeoff and landing, or eVTOL, aircraft. The company recently delivered one of its Midnight eVTOL aircraft to the US Air Force as part of its evaluation program.

The new funding round comes from existing investors such as Stellantis and United Airlines, as well as new funders like Wellington Management and Abu Dhabi investment holding company 2PointZero, a subsidiary of the United Arab Emirates’ largest listed entity, IHC. Archer says it has raised a total of $2 billion to date.

Archer’s partnership with Anduril Industries is seen as a strategic move to tap into the military-industrial complex. The deal marks Archer’s first foray into the defense sector, and the company plans to leverage its expertise in eVTOL technology to develop aircraft that can be used in various military applications.

Air taxis, also known as eVTOLs, are essentially helicopters without gas motors, but with their own unique noise profile. Companies like Joby Aviation, Volocopter, and Beta Technologies have claimed they are on the cusp of launching services that will eventually scale up nationwide. However, others have floundered; German company Lilium recently said that two of its subsidiaries were insolvent and could cease operations.

The partnership between Archer Aviation and Anduril Industries is seen as a significant development in the eVTOL industry, which is expected to play a major role in shaping the future of air travel. The US Department of Defense has expressed interest in eVTOL technology, and Archer’s partnership with Anduril Industries could help the company win a contract for its hybrid propulsion VTOL aircraft.

The final regulations published by the Federal Aviation Administration (FAA) for eVTOL vehicles have provided a boost to the industry, charting the path for the “air travel of the future.” Archer praised the FAA for providing clear direction on what is required for the safe operation of eVTOL aircraft in the US.

Archer’s expertise in eVTOL technology and its new funding round position the company to make a significant impact in the military-industrial complex. The partnership with Anduril Industries marks an exciting development in Archer’s defense ambitions, and the company’s prospects look promising as it moves forward.