Archer Accuses Rival Joby of Deceiving U.S. Government on Chinese Manufacturing Ties

In a sharp legal escalation, Archer Aviation filed a countersuit Monday alleging that competitor Joby Aviation systematically misled U.S. authorities about its manufacturing base to secure government funding. The federal court filing contends Joby, while promoting itself as an American-made company, relied on a Chinese subsidiary to procure essential aircraft components with support from the Chinese government.

Archer's complaint includes a striking allegation: that Joby attempted to hide the origin of thousands of pounds of aircraft materials by fraudulently labeling them as consumer goods like hair clips and photo albums to bypass U.S. tariffs and oversight. Joby, founded in Santa Cruz, California, operates an international footprint that includes a facility in Shenzhen, China.

"Archer's constant legal issues and flailing business operations have left it no choice but to resort to invented nonsensical theories," responded Joby attorney Alex Spiro. "We will see them in court."

The move intensifies a battle that began last November when Joby sued Archer, accusing it of stealing trade secrets via a former employee. Both California-based companies, which went public in 2021, are developing electric air taxis and competing for defense contracts.

The countersuit's timing intersects with a key policy initiative. It references a 2025 executive order from President Trump creating a program to fast-track air taxi integration. Archer alleges Joby, by wrapping itself "in the American flag," positioned itself to benefit from that order after securing hundreds of millions in U.S. government funds. On Monday, federal officials approved eight proposals for that program; Joby will participate in five, Archer in three.

Source: TechCrunch