Rolls-Royce allegedly shuts electrical propulsion unit without buyer
September 30, 2024
Rolls-Royce has apparently “elected to shut down its electrical propulsion unit, Rolls-Royce Electrical, having failed to find a buyer for the business,” reports Aviation Week; with the company having told the publication that it has “now moved that process to the next step”.
In a statement, Rolls-Royce confirmed it was “not in a position to provide further information at this time”.
During the company’s Capital Markets Day in November 2023, Rolls-Royce first announced a £1-£1.5 billion gross disposal programme incorporating a number of assets. These divestitures included the disposal of Direct Air Capture assets and Advanced Air Mobility elements (including urban and regional air mobility, the latter incorporating electric commuter aircraft).
In December 2023, revolution.aero reported that a source at Rolls-Royce had found a buyer had been found for its electric propulsion business, adding: “Our source told us CEO Tufan Erginbilgic has been tasked with redressing the balance sheet and that means focusing on investments with short and medium term returns”.
Rolls-Royce’s electrical division had formerly focused on all-electric and hybrid-electric systems suitable for a range of applications including advanced air mobility aircraft – including Bristol-based Vertical Aerospace’s VX4.
In May 2024, Vertical Aerospace announced it had reached a mutual agreement with Rolls-Royce to exit the latter’s contract to design an electric propulsion unit (EPU) for Vertical’s upcoming eVTOL. Under this agreement, Vertical received a cash amount from Rolls-Royce which the eVTOL developer said “is expected to cover the anticipated costs of an alternative EPU design contract;” adding that it is in “active engagement with a shortlist of potential EPU suppliers for its new prototype”.
However, with the UK manufacturer seemingly turning its attention more firmly towards its traditional thermal powerplants, work continues to progress on its UltraFan engine – with a second iteration of the demonstrator scheduled for assembly from next year.
