Stellantis Boosts Investment in Archer Following Key Flight Test Success

Stellantis N.V. (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) has announced an additional $55 million investment in Archer Aviation Inc. (NYSE: ACHR), a leader in electric vertical takeoff and landing (eVTOL) aircraft, following the successful completion of a significant flight test milestone. This latest investment is part of the companies' ongoing strategic funding agreement and builds upon previous financial commitments made by Stellantis earlier this year.

The recent funding adds to Stellantis' open market purchases of Archer stock worth $39 million, completed in March 2024. In 2023, Stellantis had already invested $110 million in Archer, combining both open market stock purchases and strategic investments. This ongoing financial support underscores the strong partnership between the two companies as they work together to advance urban air mobility solutions.

Archer is nearing the completion of its high-volume manufacturing facility in Covington, Georgia, which is on schedule to be finished later this year. The first phase of this project involves a 350,000 square foot facility on a 100-acre site, designed to produce up to 650 aircraft annually. This ambitious manufacturing endeavor aims to position Archer as a major player in the aircraft industry by leveraging Stellantis' extensive expertise in high-volume production.

Carlos Tavares, CEO of Stellantis, expressed his enthusiasm for the ongoing collaboration, stating, "Few things rival the excitement of seeing a dream take flight. I applaud the innovation, expertise, and hard work of the engineering and manufacturing teams from Stellantis and Archer. With this additional investment in Archer, we remain on course for a future where freedom of mobility extends beyond today's roads."

Adam Goldstein, CEO of Archer, highlighted the critical role of Stellantis in Archer's progress. "The commitment by Stellantis to Archer has been unrivaled," he said. "From its foresight to provide the manufacturing expertise and capital needed to accelerate Archer's business objectives, to the strategic vision and steadfast support from Stellantis CEO Carlos Tavares. Together, we're working to redefine urban transportation, opening new worlds of opportunity for citizens across the globe by providing more efficient access to people, places, and events across the regions they live in."

Since 2020, Stellantis has been a strategic partner to Archer through various collaborative initiatives and has been an investor since 2021. During this partnership, Archer has benefited from Stellantis' deep manufacturing, supply chain, and design expertise in developing and commercializing its eVTOL aircraft.

Archer aims to revolutionize urban travel by replacing lengthy car commutes with short, efficient electric air taxi flights. Archer's Midnight model is designed to be a piloted, four-passenger aircraft capable of rapid back-to-back flights with minimal charge time between operations. This innovation is expected to significantly reduce travel times, offering a sustainable and low-noise alternative to traditional ground transportation.

Stellantis N.V. is a global leader in the automotive industry, known for its diverse portfolio of iconic and innovative brands such as Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, FIAT, Jeep, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move, and Leasys. The company is committed to providing clean, safe, and affordable mobility solutions, aiming to become a carbon net-zero mobility tech company by 2038 under its strategic plan, "Dare Forward 2030."

Archer is at the forefront of the electrification of aviation, developing key technologies and aircraft to drive the next major transportation revolution. The company's goal is to enhance connectivity in the world's most congested cities, providing unprecedented access to people and places.

Both Stellantis and Archer have issued forward-looking statements in their respective communications, emphasizing their plans and expectations for future developments. These statements are based on current knowledge and projections but are subject to inherent risks and uncertainties that could cause actual results to differ materially. Both companies remain committed to updating stakeholders on their progress as they work towards their ambitious goals in the evolving landscape of urban air mobility.