Archer Aviation teams up with Anduril to develop hybrid VTOL aircraft, secures $430m funding boost

Archer Aviation Inc. has partnered with Anduril Industries Inc. to create a hybrid VTOL aircraft designed for critical defence applications. This exclusive collaboration combines Archer’s cutting-edge technology and manufacturing capabilities with Anduril’s expertise in artificial intelligence and mission systems integration. Together, the companies are working towards developing a hybrid VTOL aircraft that could serve the United States Department of Defense in a potential programme of record.

The creation of this hybrid VTOL aircraft underscores both companies’ shared vision to address urgent national security needs by introducing innovative and scalable solutions. The aircraft is designed to deliver next-generation vertical lift capabilities at a fraction of the cost of traditional alternatives, marking a major step in defence technology innovation.

To support the development of this project, Archer Aviation announced a substantial $430 million equity raise. The funds will be directed towards its new Archer Defense division and other corporate activities. This round saw participation from strategic partners such as Stellantis and United Airlines, alongside new investors like Wellington Management and Abu Dhabi-based 2PointZero, a subsidiary of International Holding Company (IHC).

Key Collaboration for Defence Technology Innovation

The partnership between Archer Aviation and Anduril represents a major milestone in defence technology innovation. Archer’s ability to rapidly develop a hybrid VTOL aircraft using existing commercial supply chains, coupled with Anduril’s deep expertise in mission system integration and artificial intelligence, promises to accelerate the production of these advanced aircraft. Industry analysts expect this collaboration to reduce the typical development costs for military aerospace technologies.

Joseph Pantalone, the new Head of Advanced Projects at Archer, will lead the Archer Defense division. Pantalone brings nearly 30 years of experience from Lockheed Martin and Sikorsky, where he specialised in military aviation. His leadership, combined with Archer’s rapid development capabilities, will be instrumental in ensuring the success of the hybrid VTOL aircraft project.

Shane Arnott, Senior Vice President of Engineering at Anduril, highlighted that the partnership’s focus on defence technology innovation is crucial for meeting the evolving demands of national security. According to Arnott, both companies share a common vision to address these needs using advanced vertical lift technologies that are both affordable and scalable.

Financial Position Strengthened With $430M Capital Injection

Archer Aviation concluded Q3 2024 with $502 million in cash and equivalents, and with the latest $430 million raise, the company’s total funding has now reached nearly $2 billion. This capital injection solidifies Archer’s position as a leader in the aerospace sector, enabling the company to scale its operations and continue its focus on innovative hybrid VTOL aircraft solutions.

Archer CEO Adam Goldstein noted that this new funding, alongside the Archer Aviation partnership with Anduril, will accelerate the company’s development of aerospace technologies that have the potential to transform the defence industry.

Broader Impact on Defence Technology

The collaboration between Archer Aviation and Anduril could be a game-changer for the U.S. Department of Defense. The hybrid VTOL aircraft that results from this partnership is expected to enhance the DOD’s fleet with versatile, cost-effective technology capable of addressing the challenges of modern warfare. Experts predict this hybrid VTOL aircraft could set a new standard for military vertical lift technologies.

This partnership reflects broader trends within the aerospace industry, where commercial aerospace companies are increasingly entering the defence sector to provide innovative solutions. The expertise and technology that both Archer and Anduril bring to the table are expected to dramatically shift how the U.S. military approaches the development of future aircraft.

Archer Defense Poised to Lead Innovation in Military Aviation

With Archer’s newly established Archer Defense division, the company is poised to lead the way in defence technology innovation. The division’s leadership, including Joseph Pantalone and Archer’s Defence Advisory Board, ensures the company will stay at the forefront of developing cutting-edge aerospace technologies.

Moelis & Company LLC acted as exclusive placement agent for this funding transaction, further supporting Archer’s trajectory towards becoming a key player in the hybrid VTOL aircraft and advanced aerospace sectors.