Over six months after expanding upon an existing partnership to bring mass production of eVTOLs to the US, Stellantis and Archer Aviation have shared a progress update. The partnership has now moved from the “concept phase” to the “execution phase” as its high-volume eVTOL production facility continues construction in Georgia.
Stellantis ($STLA) is a name we cover often on Electrek, both good and bad – but it wasn’t until earlier this year that we started covering electric Vertical Takeoff and Landing (eVTOL) aircraft developer Archer Aviation ($ACHR) and its “Midnight” vessel, which was unveiled last December.
Since its inception in 2018, Archer Aviation has established working relationships with United Airlines, Stellantis, and the United States Air Force. Building off these early relationships with some big hitters in aviation and high-volume production, Archer shared plans to manufacture the Midnight aircrafts at a new facility in Covington, Georgia.
This past January, we learned that existing partner Stellantis is opening up its wallet to help erect the US facility and get the Midnight eVTOLs into the air by 2024. Today, from the 2023 Paris Air Show, the partners shared a progress update with the public, which includes construction, collaboration, and fresh stock acquisition.
A rendering of the incoming Georgia eVTOL facility / Credit: Archer Aviation
Stellantis to help support up to 2,300 eVTOLs per year
The two companies shared the progress update via press release this morning, coinciding with a public display of Archer’s Midnight eVTOL at the 2023 Paris Air Show. According to Stellantis, construction of the eVTOL manufacturing facility is underway amongst roughly 100 acres in Georgia.
As the manufacturing facilities are erected and opened, Archer and Stellantis plan to leverage their respective strengths – eVTOL design and development and high-volume vehicle manufacturing, respectively – to rapidly scale US production and achieve Urban Air Mobility (UAM) commercialization. Archer founder and CEO Adam Goldstein spoke:
At Archer, our goal is not just to get to commercialization, but to achieve it at scale. High-volume manufacturing is critical to ensuring we can meet this goal and joining forces with one of the leading mobility companies in the world is helping us realize the once-in-a-generation opportunity we have to redefine urban transportation. I couldn’t be prouder of what we’ve already accomplished with this partnership as we continue to lead the industry in building out manufacturing capabilities.
Building off its existing relationship with the eVTOL developer, Stellantis shared it has also increased its strategic shareholding of Archer Aviation through a series of stock purchases on the open market. The automotive conglomerate did not immediately share details of the size of those stock purchases but said it intends to remain a minority shareholder.
Stellantis states that it has experienced personnel from its own team working full-time alongside the group at Archer Aviation to work through vital areas for scaled commercialization, including manufacturing automation, engineering, supply chain sourcing, and human resources. Together, the parties intend to bring the Georgia facility online by mid-2024. Stellantis CEO Carlos Tavares also spoke to the progress of the partnership:
We believe this unique partnership is setting the standard for cross-industry collaboration and continues to be a key pillar of our strategy to ensure Stellantis leads the way the world moves, providing freedom of mobility in all ways. With our trusted teams onsite working shoulder-to-shoulder with Archer, I have no doubt that we are on the right path.
Stellantis finished up by sharing that initial manufacturing operations in Georgia are expected to produce up to 650 eVTOL aircraft per year with room for expansion to support up to 2,300 in all. According to the automaker, manufacturing eVTOLs at those max volumes would make the US site the world’s leading aircraft manufacturing facility by volume. The partners provided the following video of the US eVTOL manufacturing site in addition to the renderings seen above. Check it out.
FTC: We use income earning auto affiliate links.More.
This week on Electrek’s Wheel-E podcast, we discuss the most popular news stories from the world of electric bikes and other nontraditional electric vehicles. This time, that includes “70 MPH e-bikes” prompting new law changes, recalled Amazon/Walmart e-bikes, Vietnam banning gasoline-powered motorcycles, and more.
The Wheel-E podcast returns every two weeks on Electrek’s YouTube channel, Facebook, Linkedin, and Twitter.
As a reminder, we’ll have an accompanying post, like this one, on the site with an embedded link to the live stream. Head to the YouTube channel to get your questions and comments in.
After the show ends, the video will be archived on YouTube and the audio on all your favorite podcast apps:
We also have a Patreon if you want to help us to avoid more ads and invest more in our content. We have some awesome gifts for our Patreons and more coming.
Here are a few of the articles that we will discuss during the Wheel-E podcast today:
Here’s the live stream for today’s episode starting at 8:00 a.m. ET (or the video after 9:00 a.m. ET):
FTC: We use income earning auto affiliate links.More.
Exxon Mobil reported second-quarter earnings on Friday that declined significantly compared to last year, though the company beat Wall Street estimates as production growth in the Permian Basin and Guyana softened the impact of lower oil prices.
Exxon’s net income fell 23% to $7.1 billion, or $1.64 per share, compared to $9.2 billion, or $2.14 per share, in the same period last year.
Here is what Exxon reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: $1.64 vs. $1.54 expected
Revenue: $81.5 billion vs. $80.77 billion expected
The oil major pumped 4.6 million barrels per day, the highest output for the second quarter since Exxon and Mobil merged more than 25 years ago. Production in the Permian hit a record 1.6 million bpd.
Exxon’s production business posted a profit of $5.4 billion, down 23% from about $7.1 billion in the same period last year on lower oil prices. Its refining business booked earnings of $1.37 billion globally, up 44% compared to $946 million in the year-ago period due to higher refining margins.
Exxon paid out $9.2 billion to shareholders, including more than $4 billion in dividends and $5 billion in share repurchases. The oil major said it’s on pace to purchase $20 billion of shares this year.
Exxon has slashed its costs by $1.4 billion so far this year and $13.5 billion since 2019. It is aiming to cut another $4.5 billion through the end of 2030.
This is a breaking news story. Please check back for updates.
Chevron on Friday reported second-quarter earnings that took a substantial hit due to low oil prices and a loss on its acquisition of Hess Corporation.
The oil major’s net income declined about 44% to $2.49 billion, or $1.45 per share, from $4.43 billion, or $2.43 per share, in the same period last year.
Chevron booked a $215 million loss on the fair value measurement of Hess shares. When adjusted for that charge and other one-time items, Chevron earned $1.77 per share to beat Wall Street estimates.
Here is what Chevron reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG:
Earnings per share: $1.77 adjusted vs. $1.70 expected
Revenue: $44.82 billion vs. $43.82 billion expected
Chevron completed its acquisition of Hess on July 18, after prevailing against Exxon Mobil in a long-running dispute that threatened to blow up the $53 billion deal. An arbitration court rejected Exxon’s claim to a right of first refusal over lucrative Hess assets in Guyana, clearing the way for Chevron to complete the transaction after a long delay.
Chevron expects the deal to begin adding to earnings in the fourth quarter. It also hopes to reduce annual run-rate costs by $1 billion by the end of 2025.
Chevron pumped a record 3.4 million barrels per day worldwide for the quarter, a 3% increase over the same period last year. U.S. production jumped about 8% to 1.69 million bpd compared to the year-ago period, with production in the Permian Basin hitting 1 million bpd. The Hess acquisition will add assets in the Bakken formation and Gulf of Mexico in addition to Guyana.
Chevron’s production business posted a profit of $2.72 billion, down 38% from $4.47 billion in the same period last year due to lower oil prices. Its refining business booked earnings of $737 million, up 23% from $597 million last year on higher margins for product sales.
Chevron paid out $5.5 billion to shareholders in the quarter, including $2.6 billion in share buybacks and $2.9 billion in dividends.