California-based eVTOL manufacturer Archer Aviation has closed its funding round after raising $220 million of $230 million in capital since the end of Q2.
The remaining $10 million is a committed investment from automotive manufacturer Stellantis which is expected to be transferred later this year upon shareholder approval.
According to Archer, this latest raise brings the company’s aggregate funding to over $1.5 billion.
“This raise will be focused on our steady march towards industrialization and commercialization. That work includes critical investments in engineering, manufacturing, testing, and R&D,” an Archer spokesperson told Zag Daily.
Archer recently reached the key terms of an agreement with Stellantis that will see Stellantis contribute capital funds in return for Archer equity at future stock prices.
“Under these key terms, Stellantis will contribute up to approximately $400 million to help scale Archer’s Midnight manufacturing to 650 aircrafts annually through an obligation to cover manufacturing labour costs as well as certain capital expenditures at Archer’s Georgia manufacturing facility through 2030.”
“We’re in the final stages of construction for our high-volume manufacturing facility in Covington, Georgia. This month we outlined the key terms of the manufacturing agreement with Stellantis that will help bring it to life.”
Archer’s Midnight eVTOL aircraft can travel at speeds of up to 150 miles per hour, carry four passengers and a pilot, and is claimed to be 100 times quieter than a helicopter at cruising altitude.
Earlier this month, Archer announced it was on track to complete construction of its nearly 400,000 square foot Georgia-based manufacturing facility, investing $118 million over the next ten years and creating more than 1,000 jobs in the process.
The company claims it maintains one of the strong liquidity positions in the industry when taking into account $360 million in cash on hand it received at the end of Q2 2024.
Global independent investment bank Moelis & Company acted as the sole agent for Archer’s latest funding transaction.
