Archer Alleges Joby Concealed Chinese Manufacturing Ties, Misled Regulators

Archer Aviation, a prominent developer of flying taxis, has accused its competitor Joby Aviation of misrepresenting its manufacturing origins and relying heavily on Chinese suppliers for over a decade. In a March 9 federal court filing in California, Archer claims Joby operated a manufacturing facility in Shenzhen, China, receiving government grants while publicly portraying itself as an American-made, vertically integrated company. This alleged deception includes falsely labeling thousands of pounds of imported aerospace components as common consumer goods to bypass U.S. tariffs, distort competition, and evade national security oversight.

The counterclaim, filed within an existing lawsuit initiated by Joby, further alleges that Joby secured at least $131 million in U.S. Air Force contracts without fully disclosing its Chinese supply chain dependencies, raising significant national security concerns. Joby's attorney, Alex Spiro, dismissed Archer's allegations as "nonsense" and attributed them to Archer's "constant legal issues and flailing business operations." This legal skirmish is part of a broader dispute, as Joby previously accused Archer of corporate espionage and using stolen information.

This latest development occurs amidst a booming electric vertical take-off and landing (eVTOL) aircraft industry, projected to grow from $6.3 billion to nearly $76 billion by 2035. Both Archer and Joby have experienced recent stock declines despite a strong performance in 2025. The accusations highlight intense competition and scrutiny within this nascent but rapidly expanding sector, particularly regarding supply chain transparency and national security implications.