Archer Aviation (NYSE:ACHR) announced on Thursday that it signed agreements with Soracle Corporation focused on bringing advanced air mobility services to Japan. Soracle is a joint venture newly established by Japan Airlines Co. (OTCPK:JAPSY) and Sumitomo Corporation,

Soracle plans to launch its AAM operation in Japan using Archer's (ACHR) Midnight aircraft, with the goal of offering electric air taxi flights in cities where existing ground transportation is constrained by traffic or geographic barriers.

Notably, Soracle has obtained the right to place aircraft orders of up to 100 Midnight aircraft, totaling approximately $500M, which would include pre-delivery payments based on certain milestones in advance of aircraft delivery.

Soracle will also develop various flight routes in attractive areas for residents as well as domestic and international visitors. Of importance, those locations could include places like Tokyo, Osaka, Nagoya, Hokkaido, Setouchi, and Okinawa with the aim of establishing a transportation network that creates new value through mobility in the sky.

Looking ahead, Archer (ACHR) and Soracle will work closely with the Japanese Civil Aviation Bureau to obtain the necessary permissions and certifications.

Shares of Archer Aviation (ACHR) rallied 11.2% in early trading on Thursday.