Palmer Luckey’s defense tech company will make next-gen military aircraft with Archer

Electric aviation startup Archer Aviation signed an exclusive deal with Palmer Luckey’s defense contractor, Anduril Industries, to jointly develop next-generation aircraft for the military. Archer also announced a new funding round of $450 million to help propel its defense ambitions.

The first product will be a hybrid propulsion vertical takeoff and landing (VTOL) aircraft that will serve as the basis for the companies’ bid for a contract with the US Department of Defense. Archer is also formalizing its efforts to be an aircraft supplier to the military through the creation of a new internal division called Archer Defense.

While Archer has been racing to finalize the government certification process that it will need to get the necessary government approvals for its electric vertical takeoff and landing, or eVTOL, aircraft, it’s also getting more deeply involved with the military-industrial complex. The San Jose, California-based company also recently delivered one of its Midnight eVTOL aircraft to the US Air Force as part of its evaluation program. Other advanced aviation companies have made similar moves.

Archer also announced it will be the recipient of a fresh capital round, with $430 million coming from preexisting investors such as Stellantis and United Airlines as well as new funders like Wellington Management and Abu Dhabi investment holding company 2PointZero, a subsidiary of the United Arab Emirates’ largest listed entity, IHC. Archer says it has raised a total of $2 billion to date.

Alongside Archer, other eVTOL companies hope to eventually win full Federal Aviation Administration approval. That got a boost recently when the agency published highly anticipated final regulations for eVTOL vehicles that it says will chart the path for the “air travel of the future.” Archer praised the FAA for “providing clear direction on what is required for the safe operation of eVTOL aircraft in the U.S.”

Air taxis, sometimes misidentified by the mainstream media as “flying cars,” are essentially helicopters without the noisy, polluting gas motors (though they certainly have their own unique noise profile). In addition to Archer, companies like Joby Aviation, Volocopter, and Beta Technologies have claimed they are on the cusp of launching services that will eventually scale up nationwide. But others have floundered; German company Lilium recently said that two of its subsidiaries were insolvent and could cease operations.

Meanwhile, Anduril is a military technology company, founded by Oculus creator Luckey, that makes surveillance and reconnaissance tech as well as military drones. The company recently teamed up with OpenAI to integrate the ChatGPT maker’s software into Anduril’s counterdrone systems.