Archer Defense proposes hybrid-propulsion military aircraft

Newly-formed business sector Archer Defense is targeting a US Department of Defense programme through a new hybrid-propulsion VTOL aircraft, developed in partnership with Anduril Industries and supported by a $430 million capital raise.

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Autonomous defence system specialists Anduril Industries is to partner with Archer Aviation to develop an aircraft for defense applications, with the first product expected to be a “hybrid-propulsion, vertical take-off and landing aircraft that will target a potential program of record from the United States Department of Defense (DOD),” says Archer.

Although it is unclear whether this aircraft might be based on Archer’s upcoming piloted, four-passenger ‘Midnight’ eVTOL, the hybrid-propulsion proposal would take the all-electric element out of the equation – the first time Archer has publicly eschewed its all-electric ambitions. However, the manufacturer states that the “partnership will accelerate speed to market for critical hybrid VTOL capabilities at a fraction of the cost of more traditional alternatives”.

The project will seek to leverage the AAM company’s “ability to rapidly develop advanced VTOL aircraft using existing commercial parts and supply chains,” combining it with Anduril’s “deep expertise in artificial intelligence, missionization, and systems integration” to create a product applicable to national security needs.

Archer Defense builds on the company’s Government Services Advisory Board, formed in May 2023, in which it stated it was “garnering significant interest from the Department of Defense as a as result of its performance specifications, including Midnight’s payload of ~1,000lbs”. At the time, Archer suggested that potential defence use cases for its aircraft “are focused on non-kinetic applications such as rescue operations and supply chain logistics”.

In August 2024, the US DOD also accepted the military airworthiness assessment of Archer’s Midnight aircraft, with the manufacturer subsequently delivering one unit to the US Air Force to evaluate under its AFWERX Agility Prime contract. Together, USAF and Archer personnel worked to simulate medical evacuation, cargo, intelligence, surveillance and reconnaissance flights. “Archer’s Midnight aircraft has the potential to significantly advance our operational capabilities,” concluded Col Elliot Leigh, AFWERX director and chief commercialisation officer for the department of the Air Force.

To support this new business initiative (alongside its ongoing civilian aircraft development), Archer has raised an additional $430 million in additional equity capital. This included participation from Stellantis, United Airlines, and new institutional investors such as Wellington Management and Abu Dhabi investment holding company 2PointZero. Having raised nearly $2 billion to date, Archer believes “it is now well-positioned with one of the sector’s leading balance sheets with no near-term financing needs”.

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