Archer Aviation and Anduril Industries announced that they're partnering on the development of a next-generation VTOL aircraft that could be used by the U.S. military.

Air-taxi maker Archer Aviation said on Thursday it has raised $430 million in fresh capital, part of which will be used to develop a hybrid aircraft with defense tech company Anduril Industries.

Defense contractor Anduril Industries and Archer Aviation are together developing a hybrid-power vertical takeoff and landing aircraft they hope can win the Pentagon's favor. Why it matters: Climate change concerns,

Electric aviation startup Archer Aviation signed an exclusive deal with Palmer Luckey’s defense contractor, Anduril Industries, to jointly develop next-generation aircraft for the military. Archer also announced a new funding round of $450 million to help propel its defense ambitions.

Archer has raised 430 million US dollars from various investors in a financing round on the back of entering into a partnership with Anduril Industries to

Electric aircraft maker Archer Aviation Inc. has brought in $430 million from investors, the company said Thursday, and announced a new partnership with weapons maker Anduril Industries Inc. to build a hybrid military aircraft.

Anduril, the company with which Archer is collaborating on the project, received a $14 billion valuation in its most recent funding round. It makes a range of defense systems including drones and trucks. In August, Anduril detailed plans to build a new factory that will expand its manufacturing capacity by more than five million square feet.