Archer Defense gains tiltrotor IP and factory to speed hybrid VTOL for US military

August 8, 2025

Archer Aviation has taken a major step toward expanding its role in the US defence sector, announcing two strategic acquisitions to accelerate the development of its hybrid, autonomous military aircraft.
The California-based eVTOL manufacturer has acquired a portfolio of patents and engineering talent from Overair, a spin-off of Karem Aircraft, a leader in tiltrotor innovation.

It has also taken over a 60,000-square-foot composite manufacturing facility from Mission Critical Composites, a firm specialising in advanced materials for defence applications.
The new composite facility will enable Archer to develop and iterate platforms faster, critical in a defence landscape where speed and adaptability are increasingly central to procurement strategies.
Archer bets on defence to prove it’s more than just an air taxi company
This evolution comes as Archer increasingly positions itself as a dual-use aerospace firm. While the company is best known for its commercial eVTOL platform, Midnight, it has begun pivoting toward hybrid propulsion to meet the range, endurance and adaptability required by military missions.
That pivot is being shaped in part through a strategic partnership with Anduril Industries, announced in late 2024.

The collaboration is focused on co-developing a next-generation VTOL platform using hybrid propulsion and autonomous systems, tailored for US Department of Defense (DoD) operations. The aircraft is expected to leverage existing commercial supply chains to accelerate development and reduce costs.
This approach aligns with a wider DoD shift toward modular, versatile uncrewed platforms, underscored by the Pentagon’s FY2026 budget request, which earmarks $13.4 billion for autonomous systems.
“The administration has made it clear: leading in advanced aviation in both commercial and defence is a national priority,” said Archer founder and CEO Adam Goldstein. “These acquisitions are part of our commitments. We’re working to accelerate our product development to meet our country’s needs.”
The hybrid VTOL aircraft under development with Anduril is expected to make use of commercial supply chains and components to speed up time-to-field and reduce costs.
This approach aligns with a wider DoD trend toward more adaptable, modular platforms capable of supporting a broad range of non-kinetic roles.
Archer Defense takes shape
Launched in response to rising government demand, Archer Defence has been backed by a $430 million capital raise in late 2024 and continues to be supported by key investors, including Stellantis, United Airlines, and Abu Dhabi-based 2PointZero.

The company has also made inroads through its participation in the US Air Force’s AFWERX Agility Prime program, where its Midnight aircraft is being evaluated for missions such as cargo delivery, casualty evacuation, and ISR (intelligence, surveillance, reconnaissance).
Following a $142 million contract awarded in 2023, Archer will deliver up to six Midnight aircraft to the Air Force, alongside flight data, training services, and technical support. In August 2024, the DoD formally accepted a military airworthiness assessment of the Midnight, clearing the way for expanded evaluation in operational environments.