Image credit: Lilium
German eVTOL developer Lilium is facing another financial crisis as the company struggles to secure a critical funding package that was expected to stabilise its operations.
After announcing a €200 million rescue deal on Christmas Eve, Lilium has so far received only a fraction of the promised funds, leaving it unable to pay salaries and forcing it to suspend operations. With time running out, the company may be forced to file for insolvency if the remaining investment does not materialise.
Reports from the German Wirtschaftwoche indicate the main funding shortfall stems from its new lead investor, Marian Boček, founder of Slovakian battery manufacturer InoBat, which was expected to contribute €150 million.
Despite Boček stating that the rescue was in full swing and that initial funds were transferred, employees and industry observers remain sceptical. An insider quoted by German media suggested that many Lilium employees are already seeking new opportunities elsewhere.
In a previous interview with Zag Daily, Lilium shareholder Dr. Vivek Arunchalam commented on Lilium’s fragile position.
“Lilium has burst, and it will soon battle a lot of legal issues which will affect the future prospects of the firm and its success. Even if they overcome these hurdles, the brand name has been affected and the trust in the product has failed,” he said.
Lilium’s struggle reflects broader turbulence in the European eVTOL sector, with German rival Volocopter also facing insolvency and Airbus pausing its air taxi project.
With international competitors such as US-based Archer Aviation and Joby accelerating progress, Arunchalam notes: “At this point, it is best if the firm merges with industry leaders such as Joby Aviation, Archer, or Airbus to regain stability under a stronger brand.”
While the insolvency filing was intended to take place today, reports indicate Lilium has pushed this decision back on the promise that the needed investment will arrive next week.
