German eVTOL Manufacturer Lilium Filed for Insolvency Last Week: What’s Next?
Funding challenges have grounded the promising eVTOL developer.
(Munich, Germany) German electric air taxi manufacturer Lilium (NASDAQ: LILM) filed for insolvency after failing to secure critical funding according to several news outlets last week, leaving the company in a situation whereby it will need to cease operations if it does not find a new investor.
Photo of a test version of the Lilium eVTOL jet during a flight test in Spain courtesy of Lilium.
According to New Atlas, Lilium’s two primary subsidiaries, Lilium GmbH and Lilium eAircraft GmbH, entered insolvency proceedings after Lilium was unable to obtain an anticipated 50 million euro investment from the German government. An additional promised investment of 50 million euros from the government of Bavaria, which was conditional upon the German government’s loan, fell through given the lack of proceedings from the German Bundestag.
Founded in 2015, Lilium had raised more than $1 billion in private investments to develop electric vertical takeoff and landing (eVTOL) aircraft, promising a future of eco-friendly air travel. The company had previously announced orders for 780 Lilium Jets for operations in the United States, Europe, South America, the Middle East and Asia.
Lilium’s plans included delivering its first two Lilium Jets for commercial use by 2026, with additional orders from international clients such as Saudi Arabia’s national carrier and U.S.-based operator UrbanLink. After multiple rounds of fundraising, including a recent $250 million campaign announced on Lilum’s website, they ultimately ran out of operating funds. Lilium’s CEO, Klaus Roewe, expressed hope that restructuring under German insolvency laws may provide a path for the company’s recovery.
Despite this setback for Lilium, the eVTOL industry continues to attract interest. U.S.-based competitor Joby Aviation recently secured a $500 million investment from Toyota and launched a stock offering to raise additional funds, while Archer Aviation has logged over 400 successful test flights this year.
