Anduril Industries and Archer Aviation entered into an exclusive agreement jointly to develop a next-generation aircraft for defense applications. The companies’ first product from this partnership is planned to be a hybrid-propulsion, vertical-take-off-and landing (VTOL) aircraft that will target a potential program of record from the United States Department of Defense (DOD).
Archer’s efforts on this project will be part of its new Archer Defense program. To help fund Archer Defense and for other general corporate purposes, Archer raised $430 million in additional equity capital, further solidifying Archer’s financial position, with participation from longtime strategic partners Stellantis and United Airlines as well as new institutional investors, including Wellington Management and Abu Dhabi investment holding company 2PointZero, a subsidiary of UAE’S largest listed entity, IHC.
With Archer’s ability to rapidly develop advanced VTOL aircraft using existing commercial parts and supply chains and Anduril’s deep expertise in artificial intelligence, missionization, and systems integration, the partnership will accelerate speed to market for critical hybrid VTOL capabilities at a fraction of the cost of more traditional alternatives.
Archer ended Q3’24 with $502 million of cash and cash equivalents on its balance sheet and this raise brings Archer’s total capital raised to nearly $2 billion to date. Following this capital raise, and together with Archer’s other announced financing arrangements, Archer believes it is now well-positioned with one of the sector’s leading balance sheets with no near-term financing needs.
Archer Defense will be led by its Head of Advanced Projects, Joseph Pantalone. Mr. Pantalone recently joined Archer and is a seasoned leader in military aviation with nearly 30 years of experience at Lockheed Martin and Sikorsky. He will draw from the continued support of Archer’s world-class Defense Advisory Board, which was formed in May of 2023 and is made up of highly decorated and distinguished retired military leaders.
Anduril Industries is a defense technology company with the mission to transform US and allied military capabilities with advanced technology. Anduril utilizes advancements including AI, computer vision, sensor fusion, optics, and automation to solve complex national security challenges.
