Lilium expects state guarantees in Germany against loan worth €100m-plus
The positive answer Lilium was looking for from Germany appears to have been realised as the federal government and State of Bavaria commission state development bank, KfW to conduct due diligence on the electric aircraft developer.
Due diligence forms part of the customary state support process, if Lilium comes out with satisfactory results the company expects to receive guarantees from the Federal Government and the Free State of Bavaria as security for a KfW loan. The exact value of the loan is yet to be determined, but Lilium is seeking a €100m minimum.
“We would like to thank those responsible in Berlin and Munich for their decision and the constructive cooperation over the last few weeks,” said Lilium CEO Klaus Roewe. “We expect due diligence to be swift as transparency is a daily routine for us as a listed company.”
As reported previously by Revolution.Aero, Lilium, alongside fellow German eVTOL developer Volocopter, had previously applied for state guarantees in their respective home states. Responses had so far not been positive, and Lilium announced earlier it was in advanced talks with the French government regarding the expansion of its industrial footprint into France.
“Electrification is in strong public interest as a contribution to the necessary decarbonisation of the industry,” said Roewe. “German government support is not only about creating a level playing field with the USA and China, but also about Germany signalling to the financial markets that innovations and new technologies are supported in Germany.”
Initial production of Lilium’s aircraft, aka Lilium Jet, began in 2023 with entry into service planned for 2026. The German firm has accumulated an order pipeline of over 780 aircraft, including binding orders and MoU agreements from operators in the US, South America, Europe, Asia and the Middle East.
