Archer Aviation has secured $300 million in new funding from institutional investors, including BlackRock, further strengthening its financial position as it accelerates hybrid aircraft development for defence applications.
This latest investment brings Archer’s total liquidity to approximately $1 billion, reinforcing its position as one of the best-capitalised players in the advanced air mobility (AAM) sector.
With this raise, Archer continues to compete with other major eVTOL players, including Joby Aviation, EHang, and Vertical Aerospace, each pursuing different strategies for commercial and defence applications.
Financial Strength in a Competitive Landscape
With this investment, Archer continues to rival fellow US industry leader Joby Aviation, which reported $710 million in liquidity as of Q3 2024.
However, this figure does not yet account for Joby’s additional $222 million raised in a follow-on equity offering in October 2024 or expected Toyota investments totaling $500 million, which would push its liquidity to approximately $1.4 billion.
Outside of America, China-based eHang has maintained positive operating cash flow for four consecutive quarters, positioning itself strongly in the urban air mobility sector. EHang reported a record $18.3 million in revenue for Q3 2024, driven by the delivery of 63 units of its EH216 series aircraft. It has also secured over $22 million in strategic investments.
Defence Opportunity Driving Investment
Defence opportunities may be behind Archer’s latest success. Archer launched its defence division in December 2024, unveiling plans for a hybrid-propulsion VTOL aircraft aimed at military applications.
CEO Adam Goldstein highlighted the unexpectedly large market potential for vertical lift aircraft in defence.
“I believe the opportunity for advanced vertical lift aircraft across defence appears to be substantially larger than I originally expected. As a result, we are raising additional capital to help us invest in critical capabilities like composites and batteries to help enable us to capture this opportunity and more,” he said.
With its ARC manufacturing facility now complete and FAA certification efforts progressing, Archer remains on track to meet its commercialisation goals.
The next key milestone will be how successfully it integrates its hybrid aircraft into the defence market—a move that could provide a more immediate revenue stream compared to the longer timeline of passenger eVTOL services.
