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
SwissDrones Sells First SDO 50 V3 Unmanned Helicopter in Japan
SwissDrones delivers first SDO 50 V3 turbine drone to Sanwa Gikou in Japan for industrial inspections and disaster logistics.
This article is based on an official press release from SwissDrones.
SwissDrones, a manufacturer of long-range unmanned helicopters systems, has announced a significant expansion into the Asia-Pacific market with the first sale of its SDO 50 V3 aircraft in Japan. The launch customer, Sanwa Gikou Co., Ltd., a specialized civil engineering firm based in Kitakyushu, intends to utilize the heavy-lift drone for industrial inspections, disaster response, and logistics across the Kyushu, Yamaguchi, and West Shikoku regions.
According to the company’s announcement, the transaction was facilitated by HIEN Aero Technologies, the strategic partner and distributor for SwissDrones in Japan. This acquisition marks a pivotal moment for Sanwa Gikou as it establishes a new “Large Drone Business” division, aiming to leverage autonomous aviation to address regional labor shortages and infrastructure maintenance challenges.
Sanwa Gikou, traditionally known for pipe rehabilitation and specialized industrial coatings, is diversifying its operations to include advanced aerial capabilities. The company plans to deploy the SDO 50 V3 for a variety of critical missions, including aerial surveillance, search and rescue (SAR), and the inspection of vital assets such as pipelines and bridges.
In a statement regarding the acquisition, Sanwa Gikou leadership emphasized the potential for integrating air and land logistics.
“The SDO 50 V3 provides new opportunities to strengthen regional public services… and explore innovative air–land integrated models.”
Isao Umebayashi, President of Sanwa Gikou Co., Ltd.
The deployment is closely tied to the “Regional Collaboration & Future Hybrid Logistics Council,” an initiative aiming to create a resilient supply chain network. By combining ground transport with high-capacity drones, the council hopes to ensure the delivery of essential supplies to isolated villages and mountainous areas, particularly during natural disasters when roads may be impassable.
The SDO 50 V3 distinguishes itself from common battery-powered quadcopters through its turbine-based propulsion and intermeshing twin-rotor design (Flettner system). Designed for heavy industrial use, the aircraft runs on Jet A1 fuel, allowing for rapid refueling and extended operational uptime compared to battery-dependent systems. According to technical specifications released by SwissDrones, the SDO 50 V3 offers the following capabilities:
HIEN Aero Technologies will oversee the importation, pilot training, and ongoing technical support for the aircraft, ensuring compliance with Japanese aviation standards.
The timing of this acquisition aligns with broader socio-economic shifts in Japan, specifically the “2024 Problem”, a term referring to the critical labor shortages in logistics and construction due to an aging population and stricter overtime regulations. The Japanese government has responded by updating the Civil Aeronautics Act to allow “Level 4” autonomy, which permits fully autonomous flights beyond visual line of sight over populated areas.
This regulatory framework is essential for the commercial viability of long-range drones like the SDO 50 V3. By automating inspections and emergency transport, companies like Sanwa Gikou aim to maintain infrastructure integrity and public safety with fewer human personnel.
The Turbine Advantage in Complex Terrain
While battery-electric VTOLs (eVTOLs) often dominate the headlines, the sale of the turbine-powered SDO 50 V3 highlights a persistent gap in the market: energy density. For missions in Japan’s Kyushu and Shikoku regions, characterized by steep mountains, heavy winds, and scattered islands, battery technology often struggles to provide the necessary range and payload endurance.
We assess that the choice of a turbine helicopter is a pragmatic decision for Sanwa Gikou. The ability to refuel in minutes rather than recharge for hours is a decisive factor for disaster relief scenarios where every minute counts. Furthermore, the Flettner rotor design provides superior stability in high winds compared to traditional tail-rotor helicopters or multi-copters, making it uniquely suited for Japan’s coastal environments. This deal suggests that despite the push for electrification, liquid-fuel systems remain the superior choice for heavy-duty, long-endurance industrial aviation in the near term.
What is the primary use for the SDO 50 V3 in Japan? Who is the manufacturer of the drone? What makes this drone different from standard battery drones?
SwissDrones Secures First Japanese Buyer for SDO 50 V3 Unmanned Helicopter
Strategic Deployment for Civil Engineering and Safety
Technical Capabilities: The SDO 50 V3
Key Performance Metrics
Market Context: Japan’s “2024 Problem”
AirPro News Analysis
Frequently Asked Questions
Sanwa Gikou will use the aircraft for infrastructure inspection, disaster response, search and rescue, and emergency logistics in the Kyushu and Yamaguchi regions.
The drone is manufactured by SwissDrones, a company based in Zurich, Switzerland, specializing in unmanned helicopter systems.
The SDO 50 V3 is powered by a turbine engine using jet fuel, which allows it to carry heavier loads (40kg+) and fly longer (3+ hours) than most battery-powered equivalents.
Sources
Photo Credit: SwissDrones
UAV & Drones
Rotron Aerospace and LIG Nex1 Sign Deal to Develop Next-Gen UAVs
Rotron Aerospace and LIG Nex1 partner to co-develop hybrid VTOL UAV platforms for South Korea’s Army, emphasizing heavy-fuel rotary engine tech.
This article is based on an official press release from Rotron Aerospace and LIG Nex1.
On December 9, 2025, UK-based propulsion specialist Rotron Aerospace and South Korean defense prime LIG Nex1 formalized a significant strategic partnership. Signed at Rotron’s headquarters in Dorset, United Kingdom, the Memorandum of Understanding (MoU) establishes a long-term collaboration aimed at co-developing next-generation unmanned aerial vehicle (UAV) platforms. The agreement, which remains valid until 2032, focuses primarily on the Medium UAV Common Platform (MUCP), a tactical hybrid drone program designed for the Republic of Korea Army (RoKA).
According to the joint announcement, this collaboration leverages the specific strengths of both nations’ defense industries. Rotron Aerospace will supply its advanced heavy-fuel rotary propulsion systems, while LIG Nex1 will lead the system architecture, platform integration, and overall program management. The deal underscores the deepening defense ties between the United Kingdom and South Korea following the 2023 Downing Street Accord.
The centerpiece of this agreement is the MUCP, a hybrid Vertical Take-Off and Landing (VTOL) drone intended for Intelligence, Surveillance, and Reconnaissance (ISR) missions. LIG Nex1, having been awarded the tender by South Korea’s Defense Acquisition Program Administration (DAPA) in August 2024, is moving rapidly toward flight testing, which is expected to commence in 2026.
The platform utilizes a hybrid configuration featuring four fixed rotors for vertical lift and a single pusher propeller for forward flight. This design eliminates the need for runways while maintaining the endurance and speed associated with fixed-wing aircraft. According to technical specifications released regarding the program, the MUCP targets a Maximum Take-Off Weight (MTOW) of approximately 340 kg and a payload capacity of 30 kg.
Rotron’s contribution is critical to the platform’s performance. The company specializes in Wankel-type rotary engines, which are favored in the UAV sector for their high power-to-weight ratio and low vibration profiles, essential characteristics for stabilizing sensitive ISR sensors. Crucially, Rotron has engineered these engines to operate reliably on heavy fuels such as JP-8 and Jet-A1, meeting the NATO Single Fuel Policy requirements that simplify military logistics.
“Rotron is proud to partner with LIG Nex1… This agreement reflects our commitment to delivering high-performance propulsion and aviation systems that enhance the capability, reliability, and operational reach of next-generation unmanned platforms.”
Gilo Cardozo, CTO & Founder, Rotron Aerospace
While the immediate focus is the domestic South Korean market, both companies have explicitly stated their intention to target global exports, specifically within the Pacific Rim and Europe. The partnership allows LIG Nex1 to secure a sovereign supply chain for critical propulsion components while providing Rotron access to major Asian defense markets. Yoon Kwan-seob, Vice President of Aerospace & Drone Business at LIG Nex1, highlighted the synergy between the two firms in a statement regarding the signing:
“By combining our experience in integrated system development with Rotron’s leading propulsion technologies, we aim to advance the Medium UAV Common Platform and expand opportunities for both domestic Republic of Korea programmes and international exports.”
Yoon Kwan-seob, VP of Aerospace & Drone Business, LIG Nex1
The selection of Rotron for the MUCP program highlights a persistent engineering bottleneck in the tactical UAV sector: the heavy-fuel requirement. While battery technology has improved, it still lacks the energy density required for the 5+ hour endurance missions targeted by the MUCP. Furthermore, traditional piston engines often struggle with the combustion characteristics of heavy military fuels like JP-8, particularly in smaller form factors.
By integrating Rotron’s rotary technology, LIG Nex1 appears to be prioritizing reliability and logistical commonality over the simplicity of electric-only systems. This hybrid approach, using electric lift for VTOL and heavy-fuel combustion for cruise, is becoming the standard architecture for modern tactical drones (Group 3 UAVs) that require runway independence without sacrificing range.
Sources: Satellite Evolution Group
Rotron Aerospace and LIG Nex1 Sign Strategic Deal for Next-Gen UAV Propulsion
The Medium UAV Common Platform (MUCP)
Propulsion Technology
Strategic Implications and Export Goals
AirPro News Analysis
Sources
Photo Credit: Satellite Evolution Group
UAV & Drones
Unusual Machines Signs Supplier Deal with Dynamic Aerospace Systems
Unusual Machines becomes Tier-1 supplier to Dynamic Aerospace Systems, providing NDAA-compliant drone components for defense and commercial platforms.
This article is based on an official press release from Unusual Machines, Inc..
On December 8, 2025, Unusual Machines, Inc. (NYSE American: UMAC) announced a new strategic supplier agreement with Dynamic Aerospace Systems (DAS), a developer of next-generation unmanned aerial systems (UAS). According to the company’s official statement, this partnership positions Unusual Machines as a key Tier-1 domestic supplier of critical Drones components, specifically designed to meet strict U.S. regulatory standards.
Under the terms of the agreement, Unusual Machines will provide flight controllers, electronic speed controllers (ESCs), motors, and other subsystems to DAS. These components will be integrated into DAS’s commercial and defense platforms, marking a significant step in Unusual Machines’ efforts to onshore the drone supply chain and reduce industry reliance on foreign technology.
The core of this agreement focuses on compliance with the National Defense Authorization Act (NDAA) and “Blue UAS” standards. As stated in the press release, the components supplied by Unusual Machines are fully compliant with these federal requirements, which are essential for securing U.S. government and defense Contracts.
Dynamic Aerospace Systems, a DBA of BrooQLy, Inc. (OTCQB: BRQL), intends to integrate these American-made components immediately into its existing production lines. The announcement highlights two specific platforms that will utilize the new hardware:
“This agreement validates Unusual Machines’ strategy to become a Tier-1 domestic supplier in the drone industry and supports DAS’s expansion into international markets.”
, Unusual Machines Press Release
While the agreement bolsters domestic defense capabilities, the press release also outlines significant international implications. Dynamic Aerospace Systems is currently engaged in active commercial programs abroad that will benefit from this supply chain Partnerships.
According to the announcement, the collaboration supports DAS’s planned deployments in the United Arab Emirates with the noon Group and in Greece with Drops Smart Hubs. These programs are focused on autonomous pilot delivery, commercial logistics, and infrastructure monitoring, demonstrating the dual-use nature of the technology for both defense and industrial sectors. This supplier agreement follows a period of rapid operational expansion for Unusual Machines. To provide context to the current deal, recent financial data indicates the company is scaling its infrastructure to meet rising demand.
According to recent market reports and company filings referenced in conjunction with this announcement, Unusual Machines reported its first profitability in Q3 2025, with revenue reaching $2.13 million. Furthermore, in October 2025, the company raised approximately $72.1 million via an “at-the-market” (ATM) offering. These funds appear to be fueling their physical expansion, including the addition of a 25,000-square-foot warehouse and fulfillment center in Orlando, Florida, announced on November 5, 2025.
From Hobbyist Roots to Defense Tier-1
We view this agreement as a pivotal moment in Unusual Machines’ corporate evolution. Historically known for its consumer-facing brands like Fat Shark and Rotor Riot, the company is aggressively pivoting toward the high-value defense and industrial sectors. By securing a supplier role for kinetic interceptors (The Breacher) and ISR platforms (The Sentinel), UMAC is effectively validating its thesis that the U.S. drone industry requires a bifurcated Supply-Chain, moving away from Chinese-dominated components toward NDAA-compliant domestic alternatives.
The timing is also notable. With the recent $25 million strategic Investments in XTI Aerospace closed in November 2025, Unusual Machines is consolidating its influence across the broader Aerospace sector, moving beyond simple component retail into complex systems integration support.
Sources: Unusual Machines Press Release, Unusual Machines Investor Relations
Unusual Machines Secures Strategic Supplier Deal with Dynamic Aerospace Systems
Strengthening the Domestic Supply Chain
International Expansion and Commercial Applications
Corporate Context and Recent Growth
AirPro News Analysis
Sources
Photo Credit: Unusual Machines
-
Commercial Aviation6 days agoVietnam Grounds 28 Aircraft Amid Pratt & Whitney Engine Shortage
-
Business Aviation3 days agoGreg Biffle and Family Die in North Carolina Plane Crash
-
Defense & Military4 days agoFinland Unveils First F-35A Lightning II under HX Fighter Program
-
Business Aviation2 days agoBombardier Global 8000 Gains FAA Certification as Fastest Business Jet
-
Technology & Innovation17 hours agoJoby Aviation and Metropolis Develop 25 US Vertiports for eVTOL Launch