Stellantis will help build an electric vertical takeoff and landing aircraft with Archer Aviation and increase its stake in the U.S. company, the two firms said on Wednesday.
Industrial companies and startups are flocking to invest in air taxis, which can take off and land vertically to ferry travellers to airports or on short trips between cities, allowing them to beat traffic.
Archer’s vertical takeoff and landing (eVTOL) Midnight aircraft, which can carry four passengers and a pilot with a range of 100 miles (161 km), will be manufactured in Covington, Georgia, from 2024.
It is designed 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,” the companies said in a joint statement.
Stellantis, created from the merger of Fiat Chrysler and PSA Group, will provide up to $150 million in equity capital for potential draw by Archer at its discretion in 2023 and 2024, subject to achievement of certain business milestones, including certification.
Stellantis will also increase its existing stake in Archer through stock purchases 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 companies said.
Adam Goldstein, the founder and CEO of Archer, said the partnership with Stellantis would “de-risk” the manufacturing process. “There are real advantages of deepening our partnership with Stellantis, which knows how to deliver vehicles at volume,” he said Wednesday on a conference call with journalists.
Stellantis CEO Carlos Tavares said the automaker first took a stake in Archer in 2021. He said that the idea of inexpensive air taxis fit with Stellantis’ goal of finding innovative solutions for accessible mobility. “Supporting freedom of mobility is the reason why we exist,” he said.
The cost of a trip would be compatible to a current automobile taxi, Goldstein said, but could come down as scale increased. Last month, Archer said a 10-minute flight from Manhattan to Newark airport in New Jersey could cost $100 per seat.
Other investors in Archer include United Airlines, which has ordered 200 Midnight aircraft.
Goldstein said Archer planned to start production by the end of 2024 at the Georgia plant, with an initial volume of 650 aircraft per year. A second phase could build 2,300 per year.
Other eVTOL ventures involving the car industry include a collaboration between Hyundai Motor Group’s air taxi unit and aerospace supplier Honeywell International to develop avionics systems.
The auto industry is well ahead in battery design but the weight of current-generation batteries is seen as a limiting factor for the range and payload of the new vehicles.
In November, European planemaker Airbus forged a partnership with Renault to develop a new generation of electric batteries and hybrid technology for cars and planes.