Archer Countersuit Targets Joby’s eVTOL Supply Chain

Archer Aviation has accused its rival Joby Aviation of misleading the U.S. government, investors, and the public over its alleged reliance on Chinese manufacturing for its eVTOL aircraft. In a counterfiling against Joby’s lawsuit accusing Archer of industrial espionage, Archer on Monday alleged that Joby has fraudulently misclassified Chinese-origin aircraft parts.

According to Archer, Joby has concealed its connections to Chinese businesses with links to the Chinese Communist Party in order to avoid “national-security scrutiny” in the U.S. The counterclaim accuses Joby of misrepresenting itself as an “American-made aviation company” in order to benefit from U.S. government support, including Air Force contracts and inclusion in the eVTOL Integration Pilot Program announced on March 9.

The counterclaim is part of a lawsuit filed by Joby in November 2025 in the U.S. District Court for the Northern District of California in San Jose, California. That lawsuit is scheduled to go to trial on March 20. In this case, Joby accused Archer of misappropriating trade secrets and seeking to undercut a deal with a real estate developer in collusion with a former Joby employee, George Kivork.

Joby denies any wrongdoing regarding its import practices or alleged Chinese ties. “Archer’s ludicrous and defamatory claims are nothing more than an irresponsible attempt to distract from Joby’s trade secret theft lawsuit proceeding against Archer,” Alex Spiro, an attorney for Joby, told AIN in an emailed statement. “Joby is a U.S.-headquartered company that operates with strict compliance across its supply chain, and the company has been fully transparent with the U.S. government about its operations.”

Furthermore, “Joby has no ties to the Chinese Communist Party and has not received grants or subsidies from Chinese authorities,” Spiro noted. “Archer’s constant legal issues and flailing business operations have left it no choice but to resort to invented nonsensical theories. We look forward to seeing them in court.”

Meanwhile, Archer’s legal team claims to have evidence that Joby imported “thousands of pounds of materials” from its Chinese subsidiary Joby Metal Shenzhen, mislabeling them as trivial consumer goods—specifically, hair clips, socks, and photo albums—in import documentation. “These practices allegedly allowed Joby to circumvent regulations designed to protect domestic industry and national security while bypassing heightened federal scrutiny of Chinese-sourced aerospace technology,” Archer asserted.

According to Archer, Joby distorted competition by reducing production expenses by means of those unlawful imports. Archer’s countersuit also claims that Joby has concealed its connections in China by “scrubbing its website of evidence…and suppressing information that would have triggered additional national-security scrutiny.”

Chinese Batteries In Question

Archer alleged that Joby misrepresents its aircraft as being “made in America” by sourcing batteries from China’s Jiangsu Zenergy Battery Technologies Group. According to the filing, Zenergy’s leadership is connected to Fuyao Glass Industry Group, which Archer accused of having ties to the Chinese Communist Party as well as a history of alleged money-laundering and labor violations. 

Joby’s 10-K filing with the U.S. Securities and Exchange Commission for the 2024 financial year states that while its primary operations are in the U.S., it has “established relationships with subsidiaries, suppliers and potential partners in select international markets.” An earlier SEC filing from December 2021 references Joby Metal Shenzhen as being one of two international subsidiaries, with the other being its company in Germany.

Japanese automotive giant Toyota is one of Joby’s main investors and partners, and it is actively participating in Joby’s efforts to manufacture eVTOL aircraft and launch commercial air services. The Japanese government is engaged in an ongoing dispute with China mainly hinging on Japan’s support for Taiwan.

Meanwhile, Archer is importing its eVTOL aircraft battery cells from Taiwan, where they are manufactured by Molicel. While Joby has not publicly disclosed any battery cell suppliers for its production aircraft or prototypes, the company has long said that it will manufacture its own custom battery packs in-house. 

“Archer is committed to sourcing as much as possible from the United States and does not source from China or any other countries of concern identified by the U.S. government,” a company spokesperson told AIN. “We actively prioritize domestic suppliers where possible. For example, we recently transitioned all composite parts manufacturing from a European vendor to a U.S.-based vendor to further strengthen our American manufacturing footprint.” 

On February 23, Archer filed a lawsuit in the Eastern District of Texas alleging that UK eVTOL manufacturer Vertical Aerospace violated its patented technology in the design of its latest Valo aircraft. Vertical firmly refuted the allegations.