This article is published in Aviation Week & Space Technology and is free to read until Jun 14, 2024. If you want to read more articles from this publication, please click the link to subscribe.
Days after Lilium’s CEO complained about the lack of support in its home country of Germany, the company announced plans for an expansion of its industrial footprint into France, where it would produce its Lilium Jet electric vertical-takeoff-and-landing (eVTOL) vehicle.
Lilium is in advanced discussions with the French government for subsidies and loan guarantees, the would-be airframer said at the Choose France Summit for foreign investors in Versailles, France, on May 13.
While France’s governmental backing would be conditional on building a factory in the country, it may effectively bring a breath of fresh air to Lilium in the shorter term. Lilium, a publicly traded company, entered 2024 with about €200 million ($216 million) in cash, but was projected to spend some €350 million over the year. It will need fresh funding in July, CEO Klaus Roewe said earlier this month. French funding may not be available by that time, but it may create momentum and encourage investors to finance the project.
Could Lilium’s French move just duplicate capacity, adding costs and burning cash? The company’s Oberpfaffenhofen production site can handle 400 units a year, so additional assembly lines may contribute to much higher rates in the 2030s, according to Lilium’s plans.
Meanwhile, French startups looking for advanced air mobility (AAM) funds, such as Aura Aero, Beyond Aero and Voltaero, may express concern that their own government is about to support a foreign–albeit European–project. A factor in the state’s decision may be that the Lilium Jet looks closer to certification. Entry into service is scheduled for 2026.
Lilium expects to conclude the talks in the coming weeks. “Lilium is currently evaluating several possible sites in France, including in the aerospace and battery production hotbeds of Nouvelle Aquitaine, to expand its industrial footprint,” the company said. Several battery production and research and development sites—long-established, new, or in the works—can be found around Bordeaux. “Among the many reasons to choose France, Lilium is attracted by France’s well-established aerospace industry, expertise in electric mobility, highly skilled workforce, and supportive government environment,” it added. The future investment could total €400 million over several years and could create up to 850 new direct jobs.
Among Lilium’s suppliers, Saint-Gobain was chosen for windows and windshields, Michelin for tires, Expliseat for seats and Ratier-Figeac for the flight control system.
After flight testing a technology demonstrator, the company has begun final assembly of the first Lilium Jet test vehicle. The aircraft is to be rolled out in the summer, with first flight planned for year’s end.
Related Content
