Germany-based Lilium plans to explore potential air-taxi assembly sites in the U.S. later this year, aiming to establish a plant by early 2029 to enter one of the world’s largest markets, according to CEO Klaus Roewe. The site selection will be finalized next year, with an expected investment of €250-300 million ($271-$325 million) in the assembly line and production enhancements.
Roewe, a former Airbus veteran, told Reuters that financial support is essential for setting up the assembly line. As of March, Lilium had €102 million in liquidity, before raising an additional $114 million to fund its first manned flight. The company is also negotiating loans with the support of German and French governments, with the latter contingent on expanding its industrial footprint in France.
Lilium is among many companies in the electric vertical take-off and landing aircraft market, attracting interest from airlines and automakers. However, industry experts and analysts at the Farnborough Airshow highlighted the significant technological and regulatory hurdles that must be overcome before these aircraft can carry passengers and achieve profitability, which has made some investors cautious.
Lilium’s U.S.-listed shares have dropped 21.7% to 92 cents this year. Competitors Archer Aviation (ACHR.N) and Joby Aviation (JOBY.N) have seen their shares fall 25.73% and rise 0.45%, respectively.
Founded in 2015, Lilium targets the regional transport market with a jet capable of a 250-kilometer range and carrying up to six passengers. This contrasts with many rivals focusing on shorter trips between cities and suburbs. Lilium aims to launch its jet service in 2026.
Photo credit: Lilium
