· Archer’s decision to source its electric powertrain externally represents a major shift in commercial and defense applications for AAM technologies.
· The partnership between Anduril and EDGE, supported by the UAE’s order for 50 Omen systems, indicates strong regional demand for autonomous electric aviation.
· Archer’s propulsion platform strengthens its role as an aircraft manufacturer and strategic technology supplier.
The deal highlights the growing convergence between sustainability-focused electric aviation and defense capability development.
· Dual-use electric aircraft programs, such as the Omen, will require coordinated regulatory frameworks across civil aviation, defense policy, and export controls.
The growing convergence between commercial electric aviation and defense innovation was put into sharp focus at the 2025 Dubai Airshow, with Archer Aviation announcing a landmark agreement to supply its electric powertrain technology to Anduril Industries and UAE group EDGE. This decision marks the first time Archer has opened its internally developed propulsion architecture to external customers, signaling a shift in industrial regulation of the advanced air mobility (AAM) sector at a time when governments and manufacturers are reevaluating the strategic, regulatory and commercial underpinnings of electric aviation.
This announcement has broader political significance because it reflects how electric propulsion originally developed for urban air taxi models is now being integrated into dual-use autonomous aircraft programmes. This shift has implications for future certification pathways, export controls, industrial expansion, and aligning sustainability goals with defense capability requirements.
Archer has confirmed that its powertrain will be integrated into the Omen, an autonomous flight and mobility aerial vehicle jointly developed by Anduril and EDGE in the UAE. The UAE has already committed to purchasing 50 Omen systems, creating early demand for both the platform and Archer’s payment devices. This commitment is one of the clearest signals yet of the country’s intent to accelerate sovereign capability in advanced aerospace systems and position itself as a regional hub for next-generation aviation production.
Commercial technology with dual-use applications
The agreement builds on nearly a decade of investment by Archer in a vertically integrated electric propulsion system originally designed for Midnight eVTOL aircraft. The company operates nearly 1 million square feet of manufacturing and testing facilities in the United States, enabling it to produce battery packs and electric motors using automated processes intended to meet aviation-grade safety and reliability requirements.
Archer Founder and CEO Adam Goldstein described the Midnight Airplane not only as a vehicle but as a technology platform capable of supporting a broader ecosystem of electric aviation applications. “Most people see our Midnight eVTOL as an airplane,” he said. “We view Midnight as a platform that hosts a wide range of exciting new aviation technologies that will be leveraged beyond our aircraft. Our powertrain agreement with Anduril is the first of what we expect will be many examples of this.”
Goldstein noted that the relationship between Archer and Andoril originated in a hybrid-electric aircraft project and evolved as the two teams gained a clear view of each other’s technical capabilities. He described the new partnership as a move that “opens up a new revenue stream” while enhancing Archer’s strategy of leveraging core heavy investment technologies across multiple aviation markets.
Implications for defense and air mobility policy
For Anduril, whose model focuses on rapid iteration and deployment of autonomous systems, the agreement provides access to a mature propulsion architecture for a platform that is expected to operate across high-risk or high-tempo missions.
The development of the Omen benefited from combining Archer’s powertrain expertise with Anduril’s proprietary engineering approach, said Shane Arnott, the company’s senior vice president of engineering. “We have been working on Omen for over five years,” he said. “By combining the Archer team’s powertrain technology expertise with a little Anduril magic, we’ve been able to evolve our propulsion solution to achieve the ranges, speeds and payload capacity we need to make the Omen operationally relevant. The maturity and reliability of Archer’s powertrain platform de-risks our plans to deliver a production version of the Omen to customers at scale.”
EDGE Group’s participation contributes to placing the program within the broader industrial strategy of the United Arab Emirates. Since its launch in 2019, Edge has consolidated more than 35 entities into advanced technology groups spanning platforms, weapons, cyber technologies and homeland security. Its mandate includes accelerating the adoption of autonomous systems and Fourth Industrial Revolution technologies, with a clear focus on building export-oriented capabilities.
Environmental, industrial and regulatory perspective
Archer’s propulsion technology integrates aviation-grade batteries, electric motors and power management systems designed to support the Midnight eVTOL’s fast-shifting flight profile, which aims to reduce 60- to 90-minute vehicle trips to 10- to 20-minute electric trips. While the Omen’s operational profile will differ significantly from a commercial air taxi, its core propulsion characteristics – low noise, low thermal signature, improved energy efficiency and digital system monitoring – suggest dual benefits across civil and defense mission sets.
From a sustainability perspective, the use of electric propulsion in aviation is consistent with long-term decarbonisation goals pursued by national regulators and industry bodies. Although defense programs are not typically subject to the same emissions frameworks as commercial aviation, the shift to hybrid and all-electric systems reduces reliance on fossil fuels for certain categories of missions and supports broader innovation in zero-emission aerospace technologies.
Organizational progress remains a central consideration. The Archer Midnight aircraft is continuing its certification process with the US Federal Aviation Administration, while the UAE General Civil Aviation Authority has begun defining the rules for electric helicopter operations and urban air mobility integration.
Programs like Omen, which combine autonomous capability with electric propulsion, sit at the intersection of drone regulation, defense export controls, and emerging AAM frameworks. This will likely require coordination between civil aviation authorities, defense ministries and standard-setting bodies as deployment timelines advance.
Redefining market structure
The deal positions Archer not only as an aircraft manufacturer, but as a potential supplier of essential electric propulsion systems for a wide range of aerospace applications. For air transport manufacturers who face significant capital requirements for certification, production and infrastructure, technology component revenues provide a more diversified and scalable business model.
For governments, this development demonstrates how industrial partnerships can accelerate sovereign capability while reducing the time needed to deploy advanced air systems. For the broader air transport and policy community, it reflects a deep interplay between sustainability-oriented business aviation innovations and the strategic priorities of departments of defense and national industrial programs.
As electric propulsion continues to move from concept to operational deployment across multiple sectors, the Archer-Anduril-EDGE agreement may be an early indicator of how future air mobility ecosystems will be structured: interconnected, dual-use, and increasingly shaped by policy decisions that link sustainability, industrial strategy, and security considerations.
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