Electric vertical take-off and landing (eVTOL) developer Archer Aviation continues to lay a global foundation for commercial operations in a new region: South Korea. The next-generation aviation specialist has announced a new partnership with Kakao Mobility, South Korea's leading mobility-as-a-service company, to join the country's Grand Challenge to rapidly introduce eVTOL mobility to the region.
Archer Aviation ($ACHR) is one of the most popular eVTOL developers that continues to gain momentum as a global player in the growing field of emission-free air travel. With an FAA airworthiness certificate already in place and investment from major companies such as United, Stellantis, and even the U.S. Air Force, Archer is literally taking to the skies and expanding its brand beyond its headquarters in Santa Clara, California.
Just days after announcing a deal to launch eVTOL air taxi services across the United Arab Emirates in autumn 2023, Archer Aviation has completed the first flight of its flagship Midnight aircraft in its home country of the United States.
Archer will continue the Midnight “for credit” testing process to receive commercial operating approval from the FAA this year, while also securing partnerships with other countries to bring advanced air mobility (AAM) to the public. Since its first eVTOL flight, Archer has signed a contract to bring air taxi operations to India and recently expanded plans in the UAE, signing a new contract worth an estimated $500 million.
Today, Archer announced further expansion plans in Asia, securing a new partnership with South Korea to help achieve the country's ambitious plans to deploy commercial eVTOL operations in the region by 2026. Payment plans are already in place and these engagements are expected to commence later this year.
South Korea's Vice Minister of Land, Infrastructure and Transport Baek Won-guk meets with executives from Kakao Mobility and Archer to commemorate the agreement / Source: Archer Aviation
Archer and KaKaoMobility bring eVTOL to South Korea
In an update released by Archer Aviation earlier this morning, the company has signed an agreement with Kakao Mobility to jointly participate in the K-UAM Grand Challenge, a public-private demonstration being held in India to garner public support for eVTOL technology.
As part of the agreement, KaKaoMobility has agreed to pay Archer $7 million in 2024 to begin developing and establishing a commercial eVTOL business in South Korea, with a second payment due in early 2025. The agreement also gives KaKaoMobility the right to purchase up to 50 Archer Midnight eVTOLs for approximately $250 million, with a pre-delivery payment due in 2025 after the Grand Challenge.
But before then, Archer and Kakao Mobility intend to use the 2024 Grand Challenge as a public stage to show how eVTOL aircraft could transform everyday commutes in South Korea. The demonstration will take place next to the South Korean Ministry of Land, Infrastructure and Transport (MOLIT), which is hosting the event and has vowed to help commercialize urban aerial mobility (UAM) by the mid-2020s. Archer Chief Commercial Officer Nikhil Goel explained:
Archer is expanding its international expansion strategy to South Korea through a groundbreaking partnership between Archer Aviation and KakaoMobility. Together, we are committed to revolutionizing transportation with Archer's eVTOL aircraft and paving the way for a cleaner, faster and more efficient future for travel between and within South Korea's cities.
Going forward, Kakao Mobility will own and operate Archer's eVTOL technology in South Korea, providing air taxis to its 30 million current app users as early as 2026. The service will launch in the capital, Seoul, where Archer says the average commuter spends around 90 minutes per day stuck in road congestion.
Archer says it will work with Kakao Mobility with the goal of conducting public demonstration flights in South Korea by late 2024. The K-UAM Grand Challenge is currently accepting applicants, with five companies scheduled to conduct technology demonstrations in December.
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