Lilium to get state aid from Germany

The German state of Bavaria says it could financially support eVTOL startup Lilium with 50 million euros. But there is a catch. It will only do so, if the federal government promises the same amount of funds.

Image: Lilium

The German Federal Transportation Ministry does seem to be on board. It welcomed Bavaria’s decision, saying it would start the necessary steps to foot its end of the bill. This comes as there have been reports that Lilium, which is currently based in Munich, is looking to leave Germany.

Just a few weeks ago, German media reported that the German startup was toying with the idea of getting foreign investors on board and relocating abroad. While the German state and federal government has been looking into financially supporting the flying electric taxi manufacturer, the decision took longer than Lilium had expected.

The vote in favour of state support for Lilium was now an “industrial policy decision by the Minister President and the entire cabinet,” said Florian Herrmann, Head of the Bavarian State Chancellery. “We want to keep this key technology in German hands and prevent it from migrating abroad,” the Federal Ministry of Transport added.

The jury on possible state aid from France is still out. As reported in May, Lilium is looking into setting up a production site in France, a prerequisite for funding.

Production of the Lilium Jet began in 2023 with a small series at Lilium’s headquarters near Munich. With the Lilium Jet’s entry into service planned for 2026, the company is preparing for larger-scale production to meet the expected global market demand. Lilium says it has an order pipeline of around 800 Lilium Jets, including firm orders and letters of intent from operators in the United States, South America, Europe, Asia, and the Middle East.

spiegel.de (in German)

2 Comments

about „Lilium to get state aid from Germany“
Cezary
14.09.2024 um 16:13
This is exciting! What is the federal government going to do?
Phil
17.09.2024 um 10:40
I know not of any other enterprise that has been underway for so long, for over a decade, devouring multi-billions in venture capital, without managing to come up with a convincing enough demo. In the particular case of Lilium this would mean having four passengers take off vertically, then take them on a 20-30 minute flight to some destination after which the contraption will decend vertically as well.

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