Lilium confident of German and French funding
Ahead of the Lilium Jet’s first flight in late 2024, the German urban air mobility pioneer is set to bolster its finances following the spending of €94.7 million in the…
June 12, 2024
Ahead of the Lilium Jet’s first flight in late 2024, the German urban air mobility pioneer is set to bolster its finances following the spending of €94.7 million in the first quarter of the year.
“Discussions around further funding have… gained traction on multiple fronts,” revealed Lilium in its Q1 2024 shareholder letter; highlighting that its own recently-completed funding round could be bolstered by loans from the German state bank and the French government.
Lilium revealed that it had “successfully completed [a] fundraising with $114 million gross proceeds” at the end of May (with the capital raise backed by new and existing investors). As of May, the German Federal and Bavarian State governments have also commissioned the state-owned development bank KfW to conduct due diligence processes on Lilium (expected to last between six and eight weeks), after which Lilium expects to receive guarantees as security for a €100 million loan from the German state bank.
Additionally, Lilium has confirmed it is in “advanced discussions with the French government towards a government guarantee-backed loan,” with a potential €200 million worth of funding to be used to develop Lilium’s industrial footprint in France. This includes provision for high-volume production facilities including a final assembly line, battery pack assembly line and maintenance facilities.
“Among the many reasons to choose France, Lilium is attracted by its thriving aerospace industry, expertise in electric mobility, highly skilled workforce, and supportive government environment,” added the company.
In April 2024, rival eVTOL manufacturer Volocopter was turned down for a loan guarantee from the state of Bavaria (to be matched by an equal amount from the German federal government).
