Lilium, the developer of an electric vertical take-off aircraft, is in advanced discussions with the French government regarding plans to expand its production capacity in France. The company is also exploring the possibility of receiving state subsidies and loan guarantees to support its growth.
The announcement was made during the ‘Choose France’ economic summit in Versailles, an event aimed at attracting foreign investors to the country, spearheaded by French President Emmanuel Macron.
To qualify for the state aid, Lilium, headquartered in Munich, would need to establish a production site in France. The company is currently evaluating several potential locations, including the aerospace and battery production hub of Nouvelle Aquitaine, with final decisions expected in the coming weeks. France’s well-established aerospace industry, expertise in electromobility, highly skilled workforce, and supportive government environment are among the factors attracting Lilium to the country.
The proposed expansion represents a significant investment, estimated at up to €400 million over several years, and could create up to 850 new direct jobs in France.
While negotiations with France progress, Lilium is also awaiting potential support from Germany. The German government and the state of Bavaria have tasked the state development bank KfW with conducting a due diligence review. Depending on the outcome, Lilium could receive state guarantees as collateral for a KfW loan, with a target loan volume of at least €100 million.
Lilium CEO Klaus Roewe expressed gratitude for the support from German authorities, stating, “We expect due diligence to be swift as transparency is a daily routine for us as a listed company.” He emphasized the importance of electrification in the industry’s decarbonization efforts, highlighting the significance of government support for innovation and new technologies.
Production of the Lilium Jet commenced in 2023 with a small series at the company’s headquarters near Munich. The Lilium Jet is scheduled to enter service in 2026, and Lilium is gearing up for larger-scale production to meet global market demand. The company has already secured an order pipeline of more than 780 Lilium Jets, including firm orders and letters of intent from operators worldwide.