Archer Aviation, a cutting-edge aviation startup, secured $430 million to develop a hybrid vertical take-off and landing (VTOL) aircraft for critical defense applications.
The latest investment brought the company’s total funding to nearly $2 billion. The investors who contributed in the funding, included Stellantis, United Airlines, Wellington Management, and Abu Dhabi-based 2PointZero.
Archer teams up with Anduril to develop hybrid-electric aircraft
Under the Archer Defense program, Anduril and Archer Aviation announced an exclusive partnership to co-develop a hybrid vertical take-off and landing VTOL aircraft designed for critical defense missions, with the goal of securing a potential Department of Defense (DOD) program of record.
While details about the aircraft remain limited, Archer revealed that the new hybrid vehicles will be manufactured at its Georgia facility. This same site is currently preparing for the mass production of Archer’s Midnight electric VTOLs, which are set to launch as part of air taxi networks in 2025.
”With Archer’s ability to rapidly develop advanced VTOL aircraft using existing commercial parts and supply chains and Anduril’s deep expertise in artificial intelligence, missionization and systems integration, the partnership will accelerate speed to market for critical hybrid VTOL capabilities at a fraction of the cost of more traditional alternatives,” according to the company statement.
Archer’s founder and CEO Adam Goldstein highlighted the rationale behind the hybrid design, citing enhanced speed, range, and payload capacity necessary for defense missions, combined with the advantages of an electric system. “The Archer team has deep expertise in the rapid design, engineering, and production of next-generation vertical-lift aircraft. With Anduril by our side, and this new influx of capital, we will accelerate the development and deployment of advanced aerospace technologies at scale.”
Goldstein confirmed that the hybrid VTOL aircraft could be weaponized for combat missions or adapted for surveillance, reconnaissance, and rescue operations.
“Rapid innovation and scalable production are critical for maintaining technological superiority,” said Shane Arnott, SVP of Engineering at Anduril. “Anduril and Archer share a common vision for advancing capabilities that meet urgent national security needs, and we look forward to partnering with Archer to bring advanced vertical lift aircraft to our customers.”
Anduril’s contribution to the partnership includes integrating its AI-powered Lattice command and control platform, which processes real-time data from multiple sensors. This software, already deployed across hundreds of military systems, automates tasks like threat detection and decision-making.
Archer Aviation
Anduril, led by its founder Palmer Luckey, is recognized for infusing Silicon Valley’s fast-paced innovation into the traditionally slow-moving defense sector. The company has raised $1.5 billion this year to expand production of its autonomous military systems and has provided drones to Ukraine in its conflict with Russia.
The Archer-Anduril collaboration comes as Archer strengthens its foothold in defense. The company recently delivered its first Midnight aircraft to the U.S. Air Force as part of a $142 million contract. However, Goldstein emphasized that the new partnership targets larger-scale opportunities, including a potential Department of Defense (DOD) “program of record.” Such programs guarantee long-term funding, traditionally reserved for established contractors.