(Alliance News) - Stellantis NV and Archer Aviation Inc. announced Tuesday that Archer has received an investment of another USD55 million from Stellantis as part of the strategic financing agreement between the companies, following the achievement of flight test results last month.

An investment that, as previously announced, adds to the series of purchases totaling 8.3 million Archer shares made by Stellantis in March this year. During 2023, Stellantis invested USD110 million in Archer through a combination of open market share purchases and investments made under the companies' strategic financing agreement.

Archer will complete construction of its high-volume production facility in Georgia, US, by the end of the year. The first phase of work will include the construction of a 32,500-square-meter plant on an area of about 40 hectares.

The plant is designed to support the production of 650 aircraft per year; it will be one of the largest production facilities in terms of volume in the aviation industry. With this facility, Archer's goal remains to create a plant that can support planned commercial expansion, leveraging Stellantis' experience as a manufacturer.

"Few things can compete with the excitement of seeing a dream take flight. I appreciate the innovation, expertise, and hard work of the design and manufacturing teams at Stellantis and Archer," said Carlos Tavares, CEO of Stellantis. "With this additional investment in Archer, we continue to focus on a future in which the freedom of mobility extends beyond the most usual modes.

"Stellantis' commitment to Archer is unmatched-from the foresight in providing the manufacturing expertise and capital needed to accelerate Archer's business goals to the strategic vision and support provided by Carlos Tavares, CEO of Stellantis," said Adam Goldstein, CEO of Archer.

"We are working together to redefine urban transportation, bringing new opportunities to the world's cities by providing more efficient access to people, places and activities in the regions where they live."

Since 2020, Stellantis has been a strategic partner for Archer through various collaborative initiatives and since 2021 as an investor. Over the years, Archer has benefited from Stellantis' expertise in areas such as manufacturing, supply chain, and design. This invaluable know-how has given new impetus to the design and commercialization phases of eVTOL aircraft.

Archer's goal is to transform urban travel by replacing 60-90 minute car commutes with electric air cab flights lasting an estimated 10-20 minutes that are safe, sustainable, quiet and cost competitive with ground transportation. Archer's Midnight is an aircraft capable of carrying four passengers and a pilot, designed to make rapid back-to-back flights with minimal recharging time between flights.

Stellantis' stock is down 2.7 percent at EUR18.13 per share.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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