California-based eVTOL (electric vertical takeoff and landing vehicle) maker Archer Aviation (ACHR) announced last week two strategic acquisitions to fast-track the development of its next-generation defense aircraft.
The company acquired the patent portfolio — and hired “critical employees” — from Overair, a VTOL startup spun out of Karem Aircraft, which develops fixed-wing and rotary-wing aircraft using high-efficiency tiltrotors.
In a separate deal, Archer acquired key composite manufacturing assets and a 60,000-square-foot facility from Mission Critical Composites, a specialized defense manufacturer in Southern California.
The company says bringing core composite fabrication capabilities in-house will allow faster prototyping and iteration for defense programs.
Archer points to the Pentagon’s $13.4 billion budget allocation for autonomy and autonomous systems as a major opportunity, with $9.4 billion earmarked for unmanned and remotely operated aerial vehicles.
“The Administration has made it clear: Leading in advanced aviation in both commercial and defense is a national priority,” Archer founder and CEO Adam Goldstein said.
“These acquisitions are part of our commitment — we’re working to accelerate our product development to meet our country’s needs.”
Archer first built its brand on commercial VTOL plans but has been making a decisive push into defense. In December, it raised $430 million to launch Archer Defense and announced an exclusive partnership with weapons manufacturer Anduril to develop a hybrid gas-and-electric VTOL for military use.
Two months later, it secured another $300 million to speed development.
“I believe the opportunity for advanced vertical lift aircraft across defense appears to be substantially larger than I originally expected,” Goldstein said in April. “We are raising additional capital to invest in critical capabilities like composites and batteries to help us capture this opportunity.”
Defense competition heats up
Joby Aviation (JOBY), Archer’s main rival in the VTOL space, has also shifted from commercial to defense.
It recently partnered with L3 Harris Technologies (LHX) to co-develop a gas turbine hybrid VTOL designed for low-altitude defense missions. The aircraft can operate fully crewed or autonomously, with flight testing slated for this fall and demonstrations planned for 2026.
On the commercial side, Archer is still moving ahead with plans to launch its first piloted VTOL flights in the UAE later this year through a partnership with Abu Dhabi Aviation, one of the region’s largest helicopter operators.
In March, it teamed up with Palantir (PLTR) to develop software for next-gen aviation systems, including air traffic control and route planning.
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