The German government has decided not to provide federal funding to Lilium, a Munich-based startup developing electric flying taxis. Despite efforts by top officials, including Chancellor Olaf Scholz and Finance Minister Christian Lindner, to secure state aid, a majority vote in favor of the project was not reached, government representatives confirmed on Thursday.
Lilium had been seeking a state guarantee for a loan of at least 100 million euros to continue its development of electric vertical take-off and landing (eVTOL) aircraft. The company, founded by graduates of the Technical University of Munich, employs 850 people but has not generated any revenue to date.
“The failure to secure federal funding is a bitter setback for Germany as a center of technology,” said Bavarian Minister President Markus Söder. A 50 million euro loan from the federal government would have been supplemented by an equal amount from the Free State of Bavaria.
Although Lilium secured a significant order from Saudi Arabia earlier this year for 50 jets, the development of the eVTOL technology remains costly. Media reports suggest the company will need between 300 and 500 million euros to reach type certification by 2026, with the first manned flight planned for 2025.
Despite support from the Social Democrats (SPD) and some officials, there was insufficient backing within the governing coalition. The rejection followed a due diligence review by the state development bank KfW. Lilium had warned that it might relocate operations outside of Germany if state funding was not secured.
Source: spiegel.de
