Image credit: Lilium
Lilium Aerospace has filed for insolvency again after a last-ditch funding deal collapsed, marking the end of the German eVTOL developer’s turbulent journey.
A group of investors had pledged more than €200 million to revive Lilium after its initial insolvency in October, but the funds never materialised. With no viable alternatives, the company confirmed it would cease operations
“While talks about alternative solutions are still ongoing, the chance for restructuring right now is highly unlikely and therefore operations will be stopped,” Lilium said in a statement. “Given the situation, this is deeply regretful for all employees and Lilium Aerospace thanks them for their resilience and dedication.”
Lilium had been working towards launching its six-passenger eVTOL jet in 2026, but financial troubles repeatedly derailed its progress. The company initially filed for insolvency in October after the German government blocked a €50 million loan guarantee, which would have unlocked matching funds from the state of Bavaria.
The failed Christmas rescue deal
A rescue deal appeared in December when a consortium called MUC Mobile Uplift Corporation, comprising European and North American investors, announced an agreement to purchase key Lilium subsidiaries.
Mobile Uplift Corporation had expressed optimism about the company’s future. “We always believed someone would step up and save Lilium at the last minute,” Robert Kamp, CEO of The Ambitious Group, told Zag Daily in December.
Investors including Christian Reber, Jens Beckers, and Frank Thelen committed to providing over €200 million in funding through a notarized agreement. Slovakian entrepreneur Marian Boček, founder of battery manufacturer InoBat, was also expected to contribute €150 million. At the time, Boček stated that the rescue was “in full swing” and that some funds had already been transferred.
However, the reality was different. Employees reported that they had not been paid, and German media sources suggested that the bulk of the funding never arrived.
With the deadline for insolvency filing looming, Lilium postponed the decision in hopes that the remaining investment would be secured. Ultimately, as the financial backing failed to materialise, the company had no choice but to cease operations.
The collapse of the deal left Lilium’s employees in a precarious situation. Many had already begun searching for new roles amid weeks of uncertainty. Some even turned to crowdfunding campaigns to meet essential living costs, while others, who had relocated for work, found themselves stranded without financial support, German media reports.
Lilium’s financial troubles underscore the volatility of Europe’s eVTOL sector. Rival German eVTOL firm Volocopter remains in pre-insolvency proceedings, with court-appointed administrators still seeking new investment.
