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Archer Raises $300M as Electric Air Taxi Firm Sets Sights on Defense

Fresh capital will help fund a hybrid vertical takeoff and landing (VTOL) model the company is developing.

Tuesday, February 11, 2025 at 12:19 PM ET

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The electric air taxi manufacturer established Archer Defense in December to target customers within the U.S. Department of Defense. [Courtesy: Archer Aviation]

Key Takeaways:

Archer Aviation secured an additional $300 million in equity capital, bringing its total to approximately $1 billion, to significantly expand its focus on the defense industry.
The new funds will primarily support the development of a "next-generation" hybrid VTOL aircraft for the U.S. Department of Defense through its Archer Defense unit, a partnership with Anduril, and invest in critical capabilities like composites and batteries.
The U.S. Air Force has already shown strong interest in Archer's technology, acquiring its Midnight eVTOL air taxis under contracts worth up to $142 million, with the military getting the first access to the aircraft.

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Electric air taxi manufacturer Archer Aviation is setting its sights on the defense industry.

The company on Tuesday announced it secured an additional $300 million in equity capital that it will put toward the development of a “next-generation” aircraft for the U.S. Department of Defense (DOD) and other military customers. The raise, which includes funds and accounts managed by investment titan Blackrock, gives Archer about $1 billion to develop the defense-minded concept alongside its Midnight air taxi, which is designed to carry paying customers.

Jack Daleo

Jack is a staff writer covering advanced air mobility, including everything from drones to unmanned aircraft systems to space travel—and a whole lot more. He spent close to two years reporting on drone delivery for FreightWaves, covering the biggest news and developments in the space and connecting with industry executives and experts. Jack is also a basketball aficionado, a frequent traveler and a lover of all things logistics.