Aircraft maker Beta Technologies will supply up to US$1 billion in electric motors to air taxi company Eve Air Mobility, leading to a surge in both companies’ share prices.
Eve was started by Brazilian aerospace manufacturer Embraer in 2020. The first flights for its electric vertical takeoff and landing (eVTOL) aircraft are set for the end of 2025 or early 2026.
“Integrating Beta Technologies into our supply chain is a pivotal milestone in advancing our eVTOL program,” said Eve CEO Johann Bordais.
“Their electric motor technology will play a critical role in powering our aircraft during cruise, supporting the maturity of our propulsion architecture as we progress toward entry into service.”
Beta is also developing electric aircraft, including eVTOL vehicles, and launched an initial public offering in November. Its first electric passenger flight was in June.
Under the 10-year deal between Eve and Beta, Beta’s electric pusher motors will be added to both Eve’s prototypes and production aircraft. The companies have already completed a trial period where Eve tested the performance of these motors in its prototype aircraft.
Eve has a backlog of 2,800 eVTOL orders, the company said. Its aircraft include an electric pusher powered by two electric motors.
The U.S. government has been seeking to boost the eVTOL sector this year, with the Federal Aviation Administration beginning a pilot program to fast-track eVTOL aircraft development in September.
Beta Technologies’ (NYSE: BETA) shares closed 8.2% higher at $28.37, while Eve Air Mobility’s (NYSE: EVEX) shares were up 12.0% to $4.67. Beta’s market capitalisation is $6.72 billion, and Eve’s is $1.63 billion.
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