Archer's Omen Powertrain Deal: First of Many for Electric Aviation?

Archer Aviation is reshaping its business strategy by transforming its proprietary electric powertrain into a standalone product line, announcing its first major supply agreement with Anduril Industries and UAE defense group EDGE at the Dubai Airshow on November 17, 2025.

Under the agreement, Archer will provide its advanced electric powertrain system to power Omen, an autonomous air vehicle (AAV) being co-developed by Anduril and EDGE for defense and security applications. The UAE has committed to an initial order of 50 Omen systems, providing Archer with early market validation for this new business avenue.

This marks a significant milestone for the aerospace company. The powertrain, originally engineered for Archer’s Midnight eVTOL air taxi, was never intended for external licensing. However, Archer founder and CEO Adam Goldstein framed the shift at Dubai, stating the company views Midnight as a platform hosting multiple technologies rather than merely an aircraft. Goldstein emphasized the Anduril deal represents the first of “many” partnerships to come, signaling aggressive expansion into the systems supplier space.

Archer’s propulsion solution combines a vertically integrated battery pack and electric engine system manufactured across nearly 1 million square feet of US facilities. The company has implemented automation in key production steps to support high-rate manufacturing for both commercial and defense customers—a capability that attracted Anduril’s interest.

Shane Arnott, Anduril’s Senior Vice President of Engineering, noted the company has developed Omen for over five years. “By combining the Archer team’s expertise in powertrain technology with Anduril’s capabilities, we’ve matured our propulsion solution,” Arnott said, emphasizing that Archer’s production-ready system enables larger-scale manufacturing.

This announcement builds on Archer’s expanding defense footprint. In December 2024, the company established Archer Defense, a dedicated business unit backed by approximately $430 million in equity to co-develop hybrid-propulsion VTOL aircraft for defense customers with Anduril. Archer has already delivered a Midnight aircraft to the US Air Force under the AFWERX Agility Prime contract for evaluation in medevac, cargo transport, and intelligence-gathering missions.

Archer’s international presence continues growing. The company holds an exclusive agreement with Korean Air for advanced air mobility commercialization across multiple markets and has been selected by authorities in Osaka and Tokyo to lead autonomous air mobility deployments in those cities.

The strategic diversification demonstrates Archer’s confidence in its core technology while capitalizing on growing defense sector interest in autonomous systems. By establishing revenue streams beyond its flagship Midnight operations, Archer positions itself as both an aircraft manufacturer and critical propulsion technology provider—a dual identity reshaping competitive dynamics in electric aviation.

Source ID: SRCE-2025-1764102510227-923