Government financing will not be granted to electric airplane producer Lilium
Pioneering electric aircraft company Lilium isn't set to receive government backing. A potential €50 million loan guarantee from the federal government was met with resistance from the Green Party within the traffic light coalition, consequently leading to the withdrawal of a Bavarian aid pledge as well. The impact on Lilium, a Munich-based firm with 1100 employees, and the local tech industry is uncertain. The company has yet to issue a statement.
SPD parliamentary group leader Dennis Rohde stated: "We in the SPD believe Germany cannot afford to lose out on future industrial jobs. Supporting this climate-neutral future technology with state aid was our preference. Unfortunately, there wasn't enough support within the current coalition for this economic policy stance."
Lilium has developed a fully electric, vertically takeoff and landing air taxi. The initial manned flight is scheduled for early 2025, with the first aircraft set for delivery to customers in 2026. However, these ambitious plans come at a substantial cost: €198 million was spent in the first half of 2024 alone. The company has already secured significant backing, with €1.5 billion invested by customers and investors, and is publicly listed on the US Nasdaq stock exchange.
Despite the withdrawal of government and regional aid pledges, other potential investors might see Lilium's innovative technology and significant backing as an opportunity to provide additional funding. Other industries and governments recognizing the importance of investing in climate-neutral future technologies could also consider offering support to Lilium.
