# Stellantis to build U.S. firm Archer’s air taxi, up stake Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-01-05 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Stellantis Partners with Archer Aviation for eVTOL Meta Description: Stellantis partners with Archer Aviation to produce electric aircraft with vertical take-off and landing capabilities. Join the future of air taxis! URL: https://financedigest.com/stellantis-to-build-u-s-firm-archers-air-taxi-up-stakehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-01-04t165120z2lynxmpej030htrtroptp4china-stellantis-jeep-bankruptcy-1736814630317-compressed.jpg) By Gilles Guillaume PARIS (Reuters) -Carmaker Stellantis will help build Archer Aviation’s electric aircraft and increase its stake in the U.S. company, the two firms said on Wednesday, [driving Archer’s shares](https://www.financedigest.com/spending-drive-knocks-spotify-shares-after-q1-beat.html "Spending drive knocks Spotify shares after Q1 beat") up nearly 17%. Industrial firms and new [startups are flocking to invest](https://www.financedigest.com/analysis-rocket-startups-face-adapt-or-die-moment-amid-investment-drought.html "Analysis-Rocket startups face adapt-or-die moment amid investment drought") 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. The vertical take-off and landing (eVTOL) Midnight aircraft, which can carry four passengers and a pilot with a range of 100 miles (161 kms), will be manufactured in Covington, Georgia, from 2024, with a production [target of 2,300 aircraft annually](https://www.financedigest.com/toyotas-july-global-vehicle-output-drops-again-puts-annual-target-in-doubt.html "Toyota’s July global vehicle output drops again, puts annual target in doubt"), Archer and Stellantis said in a joint statement. 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](https://www.financedigest.com/incentive-fm-group-wins-contract-with-global-events-company.html "Incentive Fm Group Wins Contract With Global Events Company") said. Stellantis, created from the merger of Fiat Chrysler and France’s Peugeot, 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](https://www.financedigest.com/aon-assists-freddie-mac-to-reach-5bn-risk-transfer-milestone-for-u-s-mortgage-credit-business.html "AON ASSISTS FREDDIE MAC TO REACH BN RISK TRANSFER MILESTONE FOR U.S. MORTGAGE CREDIT BUSINESS"). Stellantis will also increase its existing stake in Archer through stock purchases in the open market, though its [CEO Carlos Tavares said it wanted to keep](https://www.financedigest.com/in-listening-mode-new-bayer-ceo-keeps-open-mind-on-company-split.html "In listening mode, new Bayer CEO keeps ‘open mind’ on company split") a minority holding. We are here to support, not to control,” he said at a [press conference](https://www.financedigest.com/5-top-tips-when-holding-a-crisis-press-conference.html "5 Top Tips When Holding a Crisis Press Conference") at Archer’s headquarters in San Francisco. [Stellantis aims](https://www.financedigest.com/stellantis-aims-to-boost-recycled-material-content-in-vehicles.html "Stellantis aims to boost recycled material content in vehicles") to become a long-term, cornerstone investor in Archer, the companies said. On why the car company is branching out into aircraft manufacturing, Tavares said: “You can enjoy freedom of mobility with any kind of mobility tool. It can be a bicycle, it can be a car, it can be an aircraft, it can be anything else, so any high [technology equipment which can deliver](https://www.financedigest.com/cut-evidence-empower-how-technology-can-help-banks-deliver-on-cop27-commitments.html "Cut, evidence, empower: How technology can help banks deliver on COP27 commitments") freedom of mobility safe, clean and affordable, is what we are committed to. Other eVTOL ventures involving the car industry [include a collaboration between Hyundai Motor Group’s air taxi unit](https://www.financedigest.com/stanchart-weighing-options-including-sale-of-aircraft-lessor-unit.html "StanChart weighing options, including sale, of aircraft lessor unit") and aerospace supplier Honeywell International to develop avionics systems. The auto industry is well ahead in battery [design](https://www.financedigest.com/bmw-bets-on-design-and-recycling-not-mining-to-lower-battery-costs.html "BMW bets on design and recycling, not mining, to lower battery costs") 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 [French carmaker Renault to develop a new generation of electric batteries](https://www.financedigest.com/li-cycle-to-build-french-battery-processing-facility.html "Li-Cycle to build French battery processing facility") and hybrid technology for cars and planes. (Reporting by Gilles Guillaume; writing by Silvia Aloisi; editing by Richard Lough and Emelia Sithole-Matarise) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---