Germany-based company Lilium is planning to explore potential sites in the United States for an air taxi assembly plant, with hopes to start operations by early 2029. This move is part of Lilium’s strategy to enter one of the largest markets for electric vertical take-off and landing (eVTOL) aircraft. The company plans to finalize the location for the plant next year, with an estimated investment of 250 to 300 million euros ($271-$325 million) for the facility and production improvements.
Lilium’s CEO, Klaus Roewe, mentioned that while the company is committed to this expansion, financial support is necessary to make the assembly line operational. As of the end of March, Lilium had 102 million euros in liquidity. They recently raised an additional $114 million, which is crucial for achieving their first manned flight. The company is also in discussions to secure loans, possibly with support from the German and French governments, which could involve expanding Lilium’s industrial presence in France.
Lilium, founded in 2015, aims to carve out a niche in the regional transport market with a jet capable of a 250-kilometer range, designed to carry up to six passengers. This differentiates it from many competitors focusing on shorter routes between cities and suburbs. Lilium plans to have its jet ready for service by 2026.
The eVTOL industry, despite attracting significant interest from airlines and automakers, faces numerous challenges, including technological and regulatory hurdles. This has been reflected in Lilium’s stock performance, with shares dropping 21.7% to 92 cents this year. Other companies in the sector, like Archer Aviation and Joby Aviation, have also seen mixed results.
Lilium’s expansion into the U.S. market represents a significant step in the company’s growth strategy, as it continues to develop its innovative air taxi technology amidst a competitive and rapidly evolving industry.
