Archer Aviation is teaming up with defense tech company Anduril Industries to develop a hybrid-electric vertical takeoff and landing (VTOL) aircraft that the two California-based partners intend to pitch to the U.S. Department of Defense.

To support that endeavor, Archer launched a new business unit called Archer Defense that will be led by Joseph Pantalone, who joined Archer last month as head of advanced projects. Pantalone has nearly 30 years of prior experience at Lockheed Martin and Sikorsky.

Announcing the Anduril partnership on December 12, Archer said it had raised $430 million in fresh equity capital. That fundraising round included existing investors such as United Airlines and Stellantis, both of which are Archer partners. New investors include Boston-based investment firm Wellington Management and 2PointZero, a subsidiary of the International Holding Company (IHC), Abu Dhabi’s largest listed company.

With plans already underway to certify its all-electric Midnight eVTOL air taxi for commercial operations in the next year or so, Archer said it will leverage its “ability to rapidly develop advanced VTOL aircraft using existing commercial parts and supply chains” in developing a militarized version of the aircraft. Anduril will contribute expertise in artificial intelligence and defense systems integration.

“Rapid innovation and scalable production are critical for maintaining technological superiority,” commented Shane Arnott, senior vice president of engineering at Anduril. “Anduril and Archer share a common vision for advancing capabilities that meet urgent national security needs, and we look forward to partnering with Archer to bring advanced vertical lift aircraft to our customers.”

“The Archer team has deep expertise in the rapid design, engineering, and production of next-generation vertical-lift aircraft,” added Archer CEO Adam Goldstein. “With Anduril by our side, and this new influx of capital, we will accelerate the development and deployment of advanced aerospace technologies at scale,” Goldstein said.

In May 2023, Archer announced that it had formed a “government services advisory board,” consisting primarily of retired and distinguished U.S. military officials, to help foster its relationship with the Department of Defense. At the time, Archer said it would look into non-kinetic defense applications for its aircraft, such as cargo logistics and rescue operations.

Meanwhile, Archer has also been working with the U.S. Air Force to explore military uses for the company’s five-seat Midnight eVTOL aircraft. The company delivered its first Midnight aircraft to the U.S. Air Force for evaluation in August.