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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 company is developing a "next-generation" hybrid vertical takeoff and landing (VTOL) aircraft for the U.S. Department of Defense and other military customers, in addition to its civilian Midnight air taxi.
This new funding will primarily be invested in critical manufacturing capabilities such as composites and batteries to support its defense-related aircraft development.
Archer has partnered with Anduril to create Archer Defense and has already delivered its first Midnight eVTOL to the U.S. Air Force under existing contracts.

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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.