(Alliance News) - On Thursday, Stellantis NV said it will "significantly expand" its partnership with Archer Aviation Inc after joining forces to produce aircraft.

Archer Aviation is a California, U.S.-based company that markets electric vertical takeoff and landing aircraft.

Under a new agreement, Stellantis and Archer have joined forces to produce Archer's Midnight eVTOL aircraft.

Stellantis will contribute advanced manufacturing technology and expertise, experienced personnel and capital to enable aircraft production.

The company's goal for the project is to mass produce the aircraft as an exclusive contract manufacturer.

Stellantis has also agreed to provide up to USD150 million in equity for potential pickup by Archer, at its discretion, in 2023 and 2024.

The automaker has indicated that it intends to increase its stake in Archer through future share purchases.

"We have worked closely with Archer over the past two years and I am continually impressed by their ingenuity and unwavering commitment to delivering results," said Carlos Tavares, chief executive officer of Stellantis.

"The expansion of our partnership with Archer as a strategic investor with plans to increase our participation demonstrates how Stellantis is pushing the boundaries to provide sustainable mobility freedom, from the road to the sky."

Stellantis' stock is up 0.3 percent at EUR14.23 per share on the Milan Stock Exchange.

By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter

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