Electric aviation startup Archer Aviation has announced an exclusive partnership with Anduril Industries, a defense technology company founded by Oculus creator Palmer Luckey, to jointly develop next-generation aircraft for the US military. The partnership will focus on creating a hybrid propulsion vertical takeoff and landing (VTOL) aircraft, which will serve as the basis for the companies' bid for a contract with the US Department of Defense.

Archer also revealed that it has secured a new funding round of $450 million, bringing its total raised capital to $2 billion. The funding round includes investments from preexisting investors such as Stellantis and United Airlines, as well as new investors like Wellington Management and Abu Dhabi investment holding company 2PointZero.

The partnership with Anduril marks a significant shift in Archer's focus towards the defense sector. The company has been working towards finalizing the government certification process for its electric vertical takeoff and landing (eVTOL) aircraft, and has recently delivered one of its Midnight eVTOL aircraft to the US Air Force as part of its evaluation program. Archer has also established a new internal division called Archer Defense, which will focus on supplying aircraft to the military.

Anduril Industries, founded by Palmer Luckey in 2017, is a defense technology company that specializes in surveillance and reconnaissance tech, as well as military drones. The company has recently partnered with OpenAI to integrate the ChatGPT maker's software into Anduril's counterdrone systems. The partnership with Archer marks a significant expansion of Anduril's capabilities into the aviation sector.

The development of hybrid VTOL aircraft for the military has significant implications for the future of defense technology. VTOL aircraft offer a range of advantages over traditional helicopters, including reduced noise and pollution, increased maneuverability, and improved safety. The partnership between Archer and Anduril is likely to accelerate the development of this technology, which could have far-reaching consequences for military operations and national security.

The electric aviation sector has seen significant growth in recent years, with companies like Joby Aviation, Volocopter, and Beta Technologies working towards launching commercial air taxi services. However, the sector has also faced challenges, with companies like Lilium recently announcing that two of its subsidiaries were insolvent and could cease operations. Archer's partnership with Anduril and its focus on the defense sector may provide a more stable and lucrative revenue stream for the company.

The development of eVTOL aircraft has also been boosted by recent regulatory changes. The Federal Aviation Administration (FAA) recently published final regulations for eVTOL vehicles, which provide clear guidelines for the safe operation of these aircraft in the US. Archer has praised the FAA for "providing clear direction on what is required for the safe operation of eVTOL aircraft in the U.S."

In conclusion, the partnership between Archer Aviation and Anduril Industries marks a significant development in the electric aviation sector, with far-reaching implications for the future of defense technology. As the sector continues to evolve, it will be interesting to see how companies like Archer and Anduril shape the future of military aviation.