Electric Air Taxis Enter the Battle Arena

Electric aviation is just starting to take off, but companies are already setting their sights beyond simple air taxi services. Archer Aviation, a prominent air taxi startup based in San Jose, has revealed a new aircraft developed in collaboration with defense tech firm Anduril. This platform is designed for both military and commercial applications, according to the companies.

The new aircraft resembles a blend of Archer’s Midnight air taxi and established military vertical takeoff and landing vehicles like the V-22 Osprey. Anduril, founded by Palmer Luckey, introduced this new variant, named Thunder, at the Farnborough International Airshow in Hampshire, England. Thunder is designed to be a fully autonomous attack rotorcraft that operates alongside crewed military aircraft. Archer plans to showcase a commercial version later this week.

Unlike Midnight, Thunder features a series hybrid powertrain instead of being fully electric. This hybrid system enables the aircraft to achieve a significantly longer range while maintaining the precision needed to optimize power across various flight conditions. As air taxi companies explore hybrid power, they aim to expand their reach beyond urban transport and tap into wider markets. Archer envisions Thunder being utilized for military strikes, cargo transport, remote logistics, and operations in challenging locations.

To mitigate their substantial losses, air taxi companies are also seeking military partnerships. Most markets have yet to grant the necessary approvals for air taxis to launch commercial services and generate revenue. In the first quarter of 2026, Archer reported a loss of $217.7 million, with only $1.6 million in revenue. The company aims to kick off its air taxi service by 2026, with Abu Dhabi likely being the first market.

Archer has expressed interest in expanding into military and defense sectors. Last year, the company announced plans to license its electric vertical takeoff technology to Anduril, including providing its electric powertrain and other technologies for the defense contractor’s Omen drone program. Additionally, Archer has delivered one of its Midnight eVTOL aircraft to the US Air Force as part of an evaluation initiative.