Archer and Molicel Strike Key Battery Supply Deal for Midnight eVTOL Production

Archer Aviation (NYSE: ACHR) and battery manufacturer E-One Moli Energy Corp. (Molicel) have formalized a supply agreement for lithium-ion battery cells powering Archer’s Midnight electric vertical takeoff and landing aircraft. This partnership marks a significant milestone in Archer’s supply chain development, particularly as the company races toward commercializing its urban air mobility solution.

Why Battery Technology Matters for Midnight

The Midnight aircraft is engineered for intra-city transportation, requiring rapid charging and reliable power delivery. The design targets back-to-back flights covering approximately 20 miles, with 10-minute charging windows between trips. Achieving this operational profile demands advanced battery cells capable of delivering high power output, minimal impedance and fast-charge functionality—precisely the specifications where Molicel excels.

Molicel stock investors and industry observers are paying attention to this deal because it reflects growing confidence in the eVTOL sector’s commercial viability. Reliable battery sourcing has long been the bottleneck for aerial vehicle manufacturers. By locking in a partnership with an established battery supplier, Archer reduces technical risk and accelerates its path to certification.

The Molicel Advantage: Scale and Stability

Molicel brings more than 40 years of rechargeable lithium-ion manufacturing expertise to the partnership. The company is establishing its first Gigafactory in Taiwan, scheduled for production ramp-up in 2023, with annual capacity reaching 1.8 gigawatt-hours (GWh). This production scale is critical—Archer needs a supplier capable of meeting demand as Midnight moves from prototype to production aircraft.

The battery cells Molicel provides offer extended cycle life, translating to lower long-term operating costs for Midnight operators. The technology is already proven in demanding applications including aerospace, automotive and power tools, providing real-world validation of reliability and performance standards.

Building the Supply Ecosystem

This agreement represents tangible progress toward Archer’s commercialization roadmap. The company has now secured more than 64% of its bill-of-materials suppliers, including established leaders in aerospace component design and manufacturing. Each partnership decision reduces development timelines and certification risk while demonstrating investor confidence in Archer’s business model.

Strategic Implications for Urban Air Mobility

Both companies emphasized the intersection of performance, sustainability and profitability. Adam Goldstein, Archer’s CEO, highlighted the importance of partnering with suppliers who balance innovation with social responsibility. Casey Shiue, President of Molicel, underscored that high-performance battery technology and scalable production capabilities are value multipliers for eVTOL partners seeking to prove a sustainable, profitable business model.

The collaboration between Archer and Molicel exemplifies how specialized battery manufacturers and vehicle developers are co-evolving to solve the technical and logistical challenges of urban air mobility. As the eVTOL sector matures, supply chain stability—demonstrated by deals like this one—will increasingly separate the companies that reach market from those that stall in development.