German eVTOL Developer Lilium Files for Insolvency Again
German eVTOL developer Lilium, based in Oberpfaffenhofen, has filed for insolvency after failing to secure critical funding. The company announced on February 21, 2025, that last-ditch financing efforts did not materialize in time, leading to the cessation of operations. In a statement, Lilium expressed deep regret for its employees and extended gratitude for their resilience and dedication.
In October 2024, Lilium’s German subsidiaries entered self-administration under insolvency law after the German parliament’s budget committee blocked a €50 million guarantee for a proposed €100 million convertible loan from KfW, the state-owned development bank. Subsequently, an investment consortium named Mobile Uplift Corporation GmbH pledged over €200 million to acquire the operating assets of Lilium GmbH and Lilium eAircraft GmbH. The deal, subject to creditor approval, was expected to close in early January 2025. However, the funds were not transferred, and the transaction failed to materialize. Consequently, on December 20, 2024, the subsidiaries terminated the contracts of their remaining employees in accordance with German law.
Founded in 2015, Lilium aimed to revolutionize urban air mobility with its fully electric eVTOL flying taxis. The company planned to launch its first manned flights in 2025 and had secured a tentative order pipeline of over 780 jets from operators across the globe, including a significant order from Saudia Group for up to 100 jets, with initial deliveries slated for 2026. Despite these ambitious plans, financial challenges and the inability to secure necessary funding led to the company’s insolvency.
The collapse of Lilium underscores the financial difficulties faced by companies in the eVTOL sector. High development costs, regulatory hurdles, and the need for substantial investment have posed significant challenges. Notably, rival German eVTOL firm Volocopter also entered provisional insolvency proceedings in December 2024, with court-appointed administrators seeking new investment to sustain operations.
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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com