German eVTOL firm Lilium is now insolvent and could cease operations unless it finds a new investor, the company shared late on Thursday. The firm, which launched in 2015, has been one of the global leaders in the burgeoning electrical vertical takeoff and landing sector. It had previously announced orders for 780 Lilium Jets for operators in the U.S., Europe, South America, Middle East, and Asia.
Lilium’s decision to go into “self-administration” follows the German national parliament’s denial of a loan guarantee that was conditional for the start-up’s next round of fundraising, as well as the Bavarian government not approving a loan for €50 million (about $54 million), the company said. Lilium said it was in advanced discussions with the French government to guarantee a €219 million ($237 million) loan to finance a battery factory and assembly line in France.
The company has 1,000 employees, including 500 aerospace engineers, with its headquarters in Munich, Germany.
The company’s headquarters in Munich.
Lilium
Lilium CEO Klaus Roewe said the German parliament’s Budget Committee declined to approve a €100 million loan. “We had already conditionally secured additional private capital to complement the KfW loan. However, the Budget Committee was unable to agree on the loan and Bavaria couldn’t do it alone,” he said.
The Lilium Jet, priced at $10 million, was scheduled to take its first planned flight in early 2025. The company had promised to deliver aircraft in 2026.
The design is different than that from other eVTOL makers, focusing on longer-range, intercity flights rather than urban air-taxi hops. Its propulsion system has 30 small, ducted electric fans embedded in the wings. Lilium claims the design will deliver higher passenger capacity, lower noise levels and better maneuverability than its competitors that typically use tilting rotors.
Lilium
Lilium said its management could retain control of the company and operate under the supervision of a custodian, as it seeks new investors, or sell the business assets off whole or in parts.
Earlier this month, California-based Joby Aviation announced it had received a $500 million loan from Toyota Corp., and another competitor, Archer, received its FAA Part 135 certification earlier this year. If Lilium is unable to restructure, it would be the first major eVTOL maker to cease operations.