Addressing a critical vulnerability in the electric vertical takeoff and landing (eVTOL) industry, Archer Aviation (NYSE:ACHR) has inked a fast-charging infrastructure partnership with BETA Technologies, an electric aerospace firm that develops charging systems. Subsequently, the deal should bolster the integration of electric air taxis, possibly providing an edge for ACHR stock.
According to a press release, the agreement between Archer and BETA represents an industry first to “accelerate the roll out of an interoperable fast-charging system across the electric aircraft industry.” Specifically, Archer is “utilizing two of BETA’s Charge Cube systems at Archer’s flight test facilities, as well as a number of BETA’s Mini Cube mobile charging systems, which Archer plans to rapidly deploy as needed.”
Notably, BETA’s systems use the Combined Charging Standard (CCS), a type of charging connector for electric vehicles (EVs) that’s favored in North America and Europe. Just as importantly, the company’s charging solutions are “already in use at 14 locations across the eastern U.S.” and work is “underway to install them at another 55 locations along the East and Gulf Coasts.”
“Fast charging is critical to ensure rapid turnaround times between flights,” explained Adam Goldstein, Archer’s founder and CEO. “A widespread, fast charging system is critical to ensuring electric air taxis reach scale in the coming years and this collaboration between two industry leaders is an exciting step towards achieving that.”
Indeed, charging infrastructure is a critical component to facilitate the adoption of eVTOLs and compete with traditional air mobility platforms.
ACHR Stock Rises on a Credibility Boost
While ACHR stock has only moved up modestly today, it has been on the move over the past five sessions, gaining roughly 14% of equity value. With the development and proliferation of fast-charging networks for eVTOLs, it’s possible that this recent move may attract additional investor dollars.
BETA founder and CEO Kyle Clark also explained the necessity for quick and convenient charging to lift the eVTOL industry. “A backbone of reliable, fast and accessible infrastructure will be critical to enabling this technology, which is why we’ve been focused on building out a charging network alongside our aircraft for some time now.”
While eVTOLs carry many advantages — such as producing far less noise than helicopters — they also suffer from some disadvantages. In particular, EVs feature a wide range of charging times, depending on the systems they use. In sharp contrast, the average jetliner can be refueled in about 15 to 20 minutes.
To be fair, engineers are currently developing advanced innovations in lithium battery packs. For example, purpose-built eVTOL batteries may be able to offer a 50-mile range on only a 10-minute charge. However, a piston-engine helicopter typically features a range of 200 to 350 miles while gas-turbine-powered helicopters can fly around 300 to 450 miles on a full fuel tank.
Therefore, innovations to narrow this range capacity gap will be crucial for future eVTOL integration. And if Archer can solve the puzzle first, that would likely be a massive boost for ACHR stock.
Why It Matters
According to TipRanks, over the past three months, analysts peg ACHR stock as a unanimous strong buy. Most recently, JPMorgan reiterated its “buy” rating for shares on Oct. 27 with a $7 price target. Overall, the average price target of ACHR stands at $9.25 per share, implying more than 70% upside potential.
On the date of publication, Josh Enomoto did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
