UAV & Drones
Archer Expands Powertrain Tech to Third Parties in Defense Sector
Archer Aviation supplies its electric powertrain to Anduril and EDGE for the Omen Autonomous Air Vehicle, opening new revenue in defense markets.
In a significant strategic shift, Archer Aviation has announced it will begin supplying its proprietary electric powertrain technology to third-party companies. This move marks the first time the eVTOL developer will commercialize its core technology outside of its own aircraft, opening up a new and potentially lucrative revenue stream. The decision underscores a broader trend in the advanced air mobility (AAM) sector, where companies are increasingly looking to diversify their business models beyond future air taxi services, particularly by tapping into the defense and logistics markets.
The inaugural partners for this new venture are U.S.-based defense technology firm Anduril Industries and the UAE-based defense and technology conglomerate, EDGE Group. The collaboration, unveiled at the Dubai Airshow, will see Archer’s powertrain integrated into the “Omen” Autonomous Air Vehicle (AAV), a new hover-to-cruise aircraft co-developed by Anduril and EDGE. This partnership not only validates the performance and reliability of Archer’s technology but also plants a firm flag in the international defense market, an area proving to be a key early adopter of eVTOL-related innovations.
This development is more than just a supply deal; it’s a calculated move that leverages Archer’s investment in vertical integration. By designing and manufacturing its battery packs and electric engines in-house at its U.S. facilities, Archer has cultivated a powertrain that meets the stringent safety and performance standards required for aviation. As Archer’s Founder and CEO, Adam Goldstein, noted, the company views its Midnight aircraft not just as a vehicle, but as a “platform that plays host to a wide range of new and exciting aerospace technologies.” This deal is the first tangible expression of that platform-based strategy, signaling a future where Archer’s innovations could power a diverse array of aerial vehicles.
At the heart of this agreement is Archer’s proprietary electric powertrain, a system meticulously developed for its flagship Midnight eVTOL. This isn’t just an off-the-shelf solution; it’s a vertically integrated system, meaning Archer controls the design and manufacturing of its most critical components, particularly the battery pack. This strategic decision allows for a high degree of optimization, ensuring the powertrain delivers the necessary performance, safety, and reliability demanded by aviation applications. The system is engineered to be dual-use, capable of powering both commercial and defense aircraft, a versatility that is now being proven with the Omen AAV integration.
The powertrain’s design is a key enabler for the “hover-to-cruise” flight profile of vehicles like Omen and Midnight. This capability allows for vertical takeoff and landing, like a helicopter, combined with the efficiency of a fixed-wing aircraft in forward flight. Manufacturing for this advanced system is handled at Archer’s extensive facilities in the U.S., which span nearly one million square feet and leverage automation in key production areas. This industrial capacity is crucial for scaling production to meet the demands of both its own aircraft fleet and third-party customers like Anduril and EDGE Group.
The selection of Archer’s powertrain by established defense players serves as a powerful external validation of its technology. For a company still navigating the path to commercial air taxi certification, having its core systems chosen for a defense platform provides significant credibility. It demonstrates that the technology is robust and reliable enough for mission-critical applications, a point that resonates with regulators, investors, and future customers alike. This deal effectively de-risks a core element of Archer’s business model by proving its value in a demanding, real-world application before its own air taxi service is even operational.
“While most see our Midnight eVTOL as an aircraft, we view Midnight as a platform that plays host to a wide range of new and exciting aerospace technologies that will be leveraged way beyond our own aircraft.”, Adam Goldstein, Founder and CEO of Archer
The partnership brings together three distinct players at the intersection of aerospace and defense. Anduril Industries is a U.S. company known for its focus on autonomous systems for defense applications. EDGE Group is a major UAE-based conglomerate specializing in defense and technology for military, security, and law enforcement clients. This collaboration deepens an existing relationship between Archer and Anduril, which first partnered in late 2024 to develop a hybrid-powered version of the Midnight aircraft for defense purposes. The success of that initial work appears to have paved the way for this new, more expansive agreement.
The first product to benefit from this trilateral pact is the Omen Autonomous Air Vehicle. Co-developed and set to be co-produced by Anduril and EDGE in the UAE, the Omen is a hover-to-cruise aircraft designed for defense and advanced logistics missions. The immediate demand for such a platform is clear, as the UAE government has already placed an initial commitment to acquire 50 Omen units. This foundational order provides a solid start for the production line and ensures an immediate application for Archer’s supplied powertrains. This alliance highlights a critical trend within the AAM industry: the pivot toward defense. As eVTOL companies face lengthy and complex regulatory timelines for commercial passenger services, many are turning to the defense sector to generate near-term revenue and demonstrate their technology’s capabilities in a less constrained environment. By supplying a core component to a defense-focused vehicle, Archer gains revenue, operational data, and market validation, all while continuing its primary mission of certifying the Midnight aircraft for urban air mobility. It’s a pragmatic strategy that builds resilience and diversifies the company’s market exposure.
Archer’s decision to supply its electric powertrain to third parties is a watershed moment for the company and a telling indicator for the entire AAM industry. By commercializing its core technology, Archer is evolving from a vehicle manufacturer into a technology platform provider. This move not only creates a new, high-potential revenue stream but also strategically validates its engineering prowess through adoption by credible defense partners. The deal with Anduril and EDGE Group for the Omen AAV is a powerful first step, and as CEO Adam Goldstein suggested, it is expected to be the “first of multiple partnerships,” hinting at a broader strategy to embed Archer’s technology across the aerospace sector.
Looking ahead, this strategy could significantly influence the competitive landscape. While the ultimate goal for many eVTOL companies remains the launch of urban air taxi networks, the path to profitability may be paved with such B2B technology deals, particularly in the defense and logistics sectors. This approach allows companies to monetize their extensive R&D investments sooner, build manufacturing experience, and establish a market presence while navigating the long road of civil aviation certification. For Archer, this pivot doesn’t detract from its air taxi ambitions; rather, it strengthens the company’s financial and technological foundation, making the entire enterprise more robust and adaptable to the market’s realities.
Question: What did Archer Aviation announce? Question: What is the Omen Autonomous Air Vehicle? Question: Why is this deal significant for Archer?
Archer’s Strategic Pivot: Powertrain Tech Goes Third-Party
The Core Technology: A Closer Look at Archer’s Powertrain
Strategic Alliance: Anduril, EDGE Group, and the Omen AAV
Conclusion: A New Trajectory for Archer and AAM
FAQ
Answer: Archer announced it will supply its proprietary electric powertrain technology to third-party manufacturers, starting with Anduril Industries and EDGE Group for their Omen Autonomous Air Vehicle.
Answer: The Omen is a “hover-to-cruise” autonomous aircraft designed for defense and advanced logistics. It is being co-developed and co-produced by Anduril and EDGE Group in the UAE and will be the first third-party vehicle to use Archer’s electric powertrain.
Answer: It marks the first time Archer is commercializing its core technology for a third party, creating a new revenue stream. It also serves as a strong validation of its powertrain’s performance and reliability, particularly within the demanding defense sector.
Sources
Photo Credit: Archer Aviation
UAV & Drones
Volatus Aerospace Advances Cargo Drone Strategy with Dufour Partnership
Volatus Aerospace enhances its partnership with Dufour Aerospace by installing an Aero2 simulator to support runway-independent cargo drone deployment in Arctic and defense sectors.
This article is based on an official press release from Volatus Aerospace Inc. and additional technical data regarding the Dufour Aero2 platform.
On January 27, 2026, Volatus Aerospace Inc. (TSX: FLT) announced a significant progression in its strategic partnership with Swiss manufacturer Dufour Aerospace. The collaboration aims to deploy runway-independent cargo solutions specifically designed for austere environments, including the Arctic, defense sectors, and commercial critical infrastructure.
According to the company’s announcement, the partnership has moved from initial alignment to active capability development. A central component of this update is the installation of a dedicated Aero2 simulator at the Volatus facility in Toronto. This infrastructure is intended to accelerate pilot training, refine operational concepts (CONOPS), and facilitate mission rehearsal for future deployments.
The primary focus of the collaboration is the adaptation and deployment of the Dufour Aero2, a hybrid-electric eVTOL (electric Vertical Take-off and Landing) aircraft. Volatus Aerospace has identified a critical market need for “middle-mile” logistics, transporting payloads between 20 and 50 kilograms over distances exceeding 100 kilometers without relying on traditional airport infrastructure.
In its statement, Volatus highlighted three key strategic focus areas for the platform:
The Aero2 is designed to function as a “runway-independent” uncrewed aerial vehicle (UAV). It combines the vertical take-off capabilities of a helicopter with the aerodynamic efficiency of a fixed-wing airplane. According to technical specifications released regarding the platform, the aircraft offers distinct advantages for long-range cargo transport.
“The Aero2 is a ‘runway-independent’ uncrewed aerial vehicle (UAV) designed to bridge the gap between small drones and traditional helicopters.”
, Technical Report on Volatus & Dufour Partnership
Data regarding the Aero2 platform indicates the following performance metrics:
The installation of a physical simulator in Toronto signals a shift from theoretical partnership to operational readiness. By investing in pilot training infrastructure before the widespread commercial deployment of the airframes, Volatus appears to be mitigating the “adoption lag” often seen in the eVTOL sector.
Furthermore, the dual-use strategy, targeting both commercial resource sectors and defense markets, provides a hedge against volatility in either sector. The alignment with Canada’s NORAD modernization priorities, specifically the need for Arctic surveillance and logistics, suggests that Volatus is positioning the Aero2 not just as a delivery drone, but as a strategic asset for northern sovereignty. The partnership comes amid a broader push for modernization in Canada’s northern defense strategy. The press release and associated reports note that Volatus recently secured a C$9 million defense contract to supply ISR (Intelligence, Surveillance, and Reconnaissance) training systems to a NATO partner. The addition of the Aero2 capabilities aligns with these existing defense activities.
Additionally, the company emphasizes its relationship with Indigenous Aerospace. This collaboration is intended to ensure that remote First Nations communities benefit commercially and operationally from the introduction of these technologies, particularly for year-round community resupply and medical deliveries.
Sources: Volatus Aerospace Press Release, Dufour Aerospace Technical Specifications
Volatus Aerospace Accelerates Cargo Drone Strategy with New Simulator and Dufour Partnership Update
Bridging the “Middle-Mile” Gap
Technical Capabilities of the Aero2
AirPro News Analysis
Strategic Context and Market Impact
Frequently Asked Questions
Photo Credit: Volatus Aerospace
UAV & Drones
XTI Aerospace Shifts Focus to Drone Market with Drone Nerds Acquisition
XTI Aerospace pivots from TriFan 600 VTOL program to drone market after acquiring Drone Nerds, cutting spending and leveraging FCC drone ban.
This article is based on an official press release from XTI Aerospace.
XTI Aerospace (Nasdaq: XTIA) has officially announced a fundamental transformation of its business strategy, shifting its primary focus from the capital-intensive development of vertical takeoff and landing (VTOL) aircraft to the immediate revenue potential of the unmanned aircraft systems (UAS) market. In a letter to shareholders issued on January 20, 2026, CEO Scott Pomeroy detailed the company’s acquisition of Drones Nerds, LLC, and the subsequent restructuring of its priorities.
The strategic pivot comes as the company seeks to stabilize its financial foundation. According to the shareholder letter, XTI Aerospace will direct its near-term resources toward scaling Drone Nerds, a U.S.-based provider of enterprise drone solutions acquired in November 2025. Consequently, the company is significantly reducing expenditure on its long-standing TriFan 600 aircraft program.
This move transitions XTI from a pre-revenue development stage company into an operation generating substantial income. The company reported that Drone Nerds generated over $100 million in revenue in 2024, a figure that stands in stark contrast to XTI’s historical financial profile.
The centerpiece of XTI’s new strategy is the integration of Drone Nerds, which XTI acquired for approximately $40 million. In his letter, Pomeroy highlighted the financial logic behind the deal, noting that the purchase price represented a multiple of less than 0.4x the subsidiary’s annualized 2025 revenue.
Drone Nerds founders Jeremy Schneiderman and Alex Nafissy have joined XTI to lead the subsidiary’s daily operations. The acquisition has already impacted market perception; the company noted that its market capitalization rebounded from under $10 million in April 2025 to nearly $65 million as of January 16, 2026. On that same date, XTI shares closed at $1.88.
Additionally, the company secured a private placement investment from Unusual Machines Inc., a manufacturer of drone components compliant with the National Defense Authorization Act (NDAA). This partnership is expected to bolster XTI’s position in the domestic drone market.
For years, XTI Aerospace was defined by its ambition to certify the TriFan 600, a fixed-wing VTOL aircraft designed to combine the speed of a business jet with the versatility of a helicopter. However, the new strategic direction places this program in a holding pattern. The CEO stated that spending on the TriFan 600 will be reduced to the “lowest practical level.” The company intends to preserve the program’s intellectual property and certification capabilities but will not prioritize it for capital allocation in the near term. Pomeroy addressed the future of the aircraft in his letter:
“Our goal is to evaluate non-dilutive funding or strategic opportunities to unlock the aircraft program’s value in the future without draining current cash reserves.”
This decision reflects the high capital requirements and long development timelines associated with certifying new manned aircraft, a challenge that has affected the broader VTOL sector.
The timing of XTI’s pivot coincides with significant regulatory changes in the United States. On December 22, 2025, the Federal Communications Commission (FCC) added foreign-made drones and components to its “Covered List.” This action prohibits new equipment authorizations for affected foreign manufacturers, effectively preventing them from marketing new models in the U.S.
XTI Aerospace views this regulatory landscape as a major opportunity. As a U.S.-based provider with established domestic supply chains, Drone Nerds is positioned to capture market share vacated by banned foreign competitors. The company aims to leverage this “FCC Ban” to expand its footprint in sectors such as public safety, energy, construction, and government services.
The strategic pivot by XTI Aerospace illustrates a growing trend in the advanced air mobility sector: funding fatigue. Developing clean-sheet VTOL aircraft requires billions of dollars and years of certification work with no guarantee of success. By acquiring a revenue-positive entity like Drone Nerds, XTI has effectively bought itself a lifeline, moving away from the “cash burn” model typical of eVTOL startups.
While the TriFan 600 remains technically on the books, the language regarding “lowest practical level” spending suggests it is effectively dormant until external funding appears. This pragmatic shift may serve as a blueprint for other struggling aerospace developers looking to survive in a capital-constrained environment.
Sources: XTI Aerospace CEO Letter to Shareholders (PR Newswire)
XTI Aerospace Pivots to Drone Market, Reduces Spending on TriFan 600 VTOL Program
Acquisition of Drone Nerds and Financial Impact
Future of the TriFan 600 Program
Regulatory Tailwinds: The FCC Ban
AirPro News Analysis
Sources
Photo Credit: XTI Aerospace – Montage
UAV & Drones
Windracers ULTRA Mk2 Drone Launches with 2,000km Range and Heavy-Lift
Windracers introduces the ULTRA Mk2 drone featuring a 2,000km range, 150kg payload, and aviation-grade propulsion for defense and humanitarian logistics.
This article is based on an official press release from Windracers.
Windracers has officially launched the ULTRA Mk2, the second generation of its flagship autonomous cargo aircraft. Announced at the “Windracers LAUNCH 2026” event in London on January 15, the new platform represents a significant leap in performance, doubling the range of its predecessor to 2,000 kilometers (1,240 miles). According to the company, this range capability places the ULTRA Mk2 in a select tier of “middle-mile” logistics drones capable of cross-continental flights.
The Southampton-based manufacturer positions the aircraft as a rugged, cost-effective solution for defense, humanitarian aid, and commercial logistics. The platform has already been flight-verified carrying a 100kg payload over the 2,000km distance, roughly equivalent to a flight from London to Marrakesh. A configuration designed to carry 200kg over the same distance is currently in development.
The transition from the Mk1 to the Mk2 involves substantial hardware upgrades aimed at mass production and reliability. The most critical enhancement, according to technical specifications released by Windracers, is the propulsion system. The aircraft has moved from industrial engines to aviation-grade propulsion.
The ULTRA Mk2 replaces the previous Briggs & Stratton engines with two German-made Hirth F23 two-stroke engines. This upgrade doubles the power output from approximately 25hp to 50hp per engine. Consequently, the Maximum Take-Off Weight (MTOW) has increased to 510kg, allowing for heavier fuel and cargo loads.
Aerodynamically, the airframe retains its 10-meter wingspan and twin-boom fuselage but introduces a new inverted V-tail design. Windracers states that this design change reduces drag and part count, contributing to the platform’s improved fuel efficiency.
While the aircraft maintains a “drop-floor” bay for precise parachute deliveries, a feature utilized in military and humanitarian scenarios, the payload capacity has seen a marked increase. The Mk2 offers a nominal payload of 150kg, with a maximum capacity of up to 200kg.
“With its combination of heavy-lift capability and 2,000km range now in development, Windracers ULTRA sits among a select group of long-endurance UAS that are redefining what is possible in both civil and defence operations.”
, Stephen Wright, Founder and Chairman of Windracers
Unlike many conceptual drones in the logistics sector, the Windracers platform has logged significant real-world flight hours. The company describes the aircraft as the “Jeep of the skies,” prioritizing utility and ruggedness over speed or luxury.
The platform is currently active in several high-stakes environments:
The introduction of the ULTRA Mk2 significantly alters the competitive landscape for middle-mile cargo drones. By achieving a 2,000km range, Windracers moves closer to the capabilities of the Dronamics “Black Swan,” which boasts a range of approximately 2,500km. However, the two platforms serve slightly different niches.
While the Black Swan is larger with a 350kg payload, Windracers emphasizes a “low-cost” and “rugged” philosophy suitable for austere environments with poor runway quality. This contrasts with VTOL (Vertical Take-Off and Landing) competitors like the Elroy Air “Chaparral,” which requires no runway but is limited to a much shorter range of roughly 480km. Windracers appears to be betting that the trade-off of requiring a short runway (STOL) is worth the four-fold increase in range for cross-border and maritime operations.
Furthermore, the explicit mention of “sovereign capability” by UK officials suggests that Windracers is securing a foothold as a strategic national asset, insulating it somewhat from the purely commercial pressures faced by other drone logistics startups.
Windracers has indicated that the high-capacity configuration, capable of hauling 200kg over the full 2,000km range, is expected to be available in the coming months. The avionics system remains “masterless,” meaning the aircraft operates autonomously without the need for a remote pilot, a key factor in reducing operational costs for large-scale logistics networks.
Windracers Unveils ULTRA Mk2: A Heavy-Lift Drones with 2,000km Range
Technical Evolution: From Prototype to Production
Propulsion and Aerodynamics
Payload Capabilities
Operational History and Strategic Use Cases
AirPro News Analysis
Future Developments
Sources
Photo Credit: Windracers
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