The German state of Bavaria has proposed a substantial financial support package of 50 million euros for eVTOL startup Lilium. However, this support hinges on a matching commitment from the federal government.
The German Federal Transportation Ministry has expressed its endorsement of Bavaria’s proposal and indicated that it would initiate the necessary procedures to match the state’s contribution. This development follows recent reports that Lilium, currently headquartered in Munich, is contemplating relocation abroad, potentially seeking foreign investors.
Recent German media coverage suggested that Lilium was exploring opportunities to move its operations and attract international funding due to delays in securing financial backing from German authorities. In response, Florian Herrmann, Head of the Bavarian State Chancellery, described the vote in favor of state support as an “industrial policy decision by the Minister President and the entire cabinet.” He emphasized the intent to retain the key technology within Germany and prevent it from moving overseas.
The Federal Ministry of Transport echoed this sentiment, stating the importance of keeping the technology domestically and ensuring its continued development within Germany. Meanwhile, Lilium’s plans for a potential production site in France are still under review, as such a move could impact its eligibility for state aid.
Lilium commenced production of its Lilium Jet in 2023 at its Munich headquarters, with the goal of launching the aircraft in 2026. The company is gearing up for larger-scale production to meet anticipated global demand and currently boasts an order pipeline of approximately 800 Lilium Jets, encompassing both firm orders and letters of intent from operators across the United States, South America, Europe, Asia, and the Middle East.
