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JAKARTA – An electric car maker from the US, Stellantis, will help build the Archer Aviation electric aircraft and increase its stake in the company. This was reported by the two companies on Wednesday, January 4, pushing Archer's stock up now almost 17%.

Industrial companies and new startups are flocking to invest in air taxis, which can take off and land vertically (VTOL) to transport travelers to airports or on short journeys between cities, allowing them to avoid traffic on the ground.

The Midnight vertical takeoff and landing (eVTOL) aircraft, which can carry four passengers and one pilot with a range of 100 miles (161 km), will be produced in Covington, Georgia, starting in 2024. According to Archer and Stellantis in a joint statement, the aircraft is targeted capable of producing 2.300 aircraft each year.

The plane is designed for short back-to-back trips of about 20 miles, with a charging time of about 10 minutes in between.

"The aim is for Stellantis to mass-produce the Archer eVTOL aircraft as its exclusive contract manufacturer," the company said, as quoted by Reuters.

Stellantis, which was created from the merger of France's Fiat Chrysler and Peugeot, will provide up to USD 150 million in equity capital for Archer.

Stellantis will also increase its existing stake in Archer through an open market share purchase, although Stellantis CEO, Carlos Tavares, has said it still wants to retain a minority interest.

"We are here to support, not to control," Tavares said at a news conference at Archer's headquarters in San Francisco. "Stellantis wants to be a long-term cornerstone investor in Archer."

Tavares also said there is a special reason his company is now branching out into aircraft manufacturing, "You can enjoy the freedom of mobility with all kinds of mobility devices," said Tavares.

"It could be a bicycle, it could be a car, it could be an airplane, it could be anything, so any high-tech equipment that can provide freedom of movement in a safe, clean and affordable way is our commitment," added Tavares.

Another eVTOL venture involving the auto industry, is a collaboration between Hyundai Motor Group's air taxi unit and aerospace supplier Honeywell International to develop an avionics system.

The auto industry excels in battery design, but the weight of current-generation batteries is seen as a limiting factor in the range and payload of new vehicles.

Last November, European aircraft maker Airbus also entered into a partnership with French automaker Renault to develop a new generation of electric battery and hybrid technology for cars and aircraft.


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