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.

Shares of Archer were down 4% in early trading.

Existing investors United Airlines and Stellantis as well as new backers such as Wellington Management and Abu Dhabi investment holding company 2PointZero participated in the fundraising, which was through an equity offering.

The electric motors of flying taxi company Archer Aviation, are seen on one of the wings of their all-electric aircraft from inside a facility in Hawthorne, California, U.S. REUTERS/Mike Blake

Anduril, which was founded by entrepreneur Palmer Luckey, and Archer said the aircraft would target a potential "program of record" — a government approved and authorized acquisition program — from the Pentagon.

The companies did not disclose any details of the vertical takeoff and landing aircraft, including its target entry-into-service date or the investment involved.

"With Anduril by our side, and this new influx of capital, we will accelerate the development and deployment of advanced aerospace technologies at scale," said Archer Aviation CEO Adam Goldstein.

Industry executives have said U.S. President-elect Donald Trump's planned government efficiency drive involving Tesla CEO Elon Musk could lead to more joint projects between big defense contractors and smaller tech firms in areas such as artificial intelligence, drones and uncrewed submarines.

The latest fundraising also comes when the electric vertical takeoff and landing (eVTOL) industry faces a cash crunch as technological and regulatory hurdles weigh on the sector, though analysts have said Archer is among the best-positioned to operate long enough to at least achieve certification.

Archer, which is also developing a five-seater commercial eVTOL aircraft, said the new fundraising would eliminate any near-term financing needs.

The San Jose, California-based air-taxi maker ended the third quarter with $502 million of cash and cash equivalents. The latest funding brings Archer's total capital raised to nearly $2 billion to date.