Archer Materials completes $7M placement and launches partnership with IonQ

Archer Materials Limited has secured $7 million through a two-tranche placement, receiving strong backing from new institutional investors. Concurrently, Archer has entered a three-year strategic partnership with IonQ, Inc., a leader in quantum computing, to access the IonQ Quantum Cloud for developing quantum algorithms, applications, and solutions.

This partnership is a key step in Archer's strategy to establish sovereign quantum computing capabilities in Australia. The funds will support the implementation of this strategic agreement, as well as other quantum initiatives and general working capital needs.

Under the Quantum Compute Agreement, Archer gains three years of access to IonQ's Quantum Cloud and its Forte-class system, with future access to the Tempo-class hardware. Archer's engineers will work alongside an IonQ specialist team, providing compute hours for Archer's customers to develop applications.

The agreement includes a joint commitment to explore the deployment of an IonQ quantum computer in Australia. This could potentially transform Archer from a graphene qubit hardware developer into a sovereign quantum services operator.

Dr. Simon Ruffell, CEO of Archer, stated, "The strong support we have received through this equity raising is a clear endorsement of Archer’s quantum strategy. This funding positions Archer to execute the strategic agreement with IonQ and advance the Company’s other projects to the next stage."

The Australian Government's national quantum strategy and CSIRO's projection of a A$6 billion domestic market by 2045 highlight the importance of this initiative. Archer, as the only ASX-listed pure quantum company, is well-positioned if sovereign compute capabilities are developed onshore.

Archer and IonQ will assess data center suitability and engage with sectors such as government, defense, banking, and research, where data sovereignty is crucial.

In its CSIRO-supported QML fraud detection project, Archer developed a quantum neural network that detected 118 of 148 frauds with one false positive in a June test. The software initially ran on IQM's 20-qubit Garnet machine via AWS Braket. Transitioning to IonQ's commercial-grade hardware, with 99.99% two-qubit gate fidelity, offers a better platform for Archer to pitch its fraud detection software to Australian banks.

Archer continues to work towards a working qubit demonstration by Q3 2026, with full-wafer graphene runs currently underway.