eVTOL: Lilium on the Brink of Bankruptcy

Lilium, the German manufacturer of electric vertical takeoff and landing aircraft (eVTOL), is going through a major financial crisis.

Like the internet bubble in the early 2000s, the market for electric vertical takeoff and landing devices seems to be bursting. After the refusal of a €50 million loan guarantee by the budget committee of the German parliament, and the blockage of an equivalent loan from the State of Bavaria, Lilium announced its intention to file for judicial protection. This self-administration process, if validated by the court, would allow the company to continue its activities while reorganizing its finances under supervision, with the goal of attracting new investors or partially selling its assets.

Lilium is seeking funding

The CEO of Lilium, Klaus Roewe, emphasized the need for government support to reassure investors, particularly in light of international competition benefiting from subsidies and loans in countries like the United States, France, China, and the United Kingdom. In addition to German funding, Lilium is in discussions with the French government for a €219 million loan intended for the construction of a battery factory and an assembly line in southwestern France. However, this financial support remains uncertain, hence the urgency for Lilium to stabilize its situation through this restructuring process.

This judicial protection aims to preserve jobs, customer and supplier relationships, and especially to ensure the continuation of activities. Although the outcome of the procedure is not guaranteed, Roewe remains optimistic about the potential of electric aviation for decarbonization. “We firmly believe that electric aviation is our best hope for the decarbonization of aviation,” he stated.

Lilium will soon communicate the details of this restructuring to stakeholders. In this critical phase, the future of the Lilium Jet, and more broadly of the eVTOL sector, may depend on the success of this initiative and future investments.

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