After initial reversal, eVTOL maker Lilium set to receive German state loans

German air electric takeoff and landing (eVTOL) aircraft developer Lilium has taken another step toward securing funding it needs to push its battery-fueled jet toward commercialization, with the announcement that German officials have resumed work toward freeing up €100 million ($108 million) in loans to the company.

Lilium said Wednesday that Germany’s federal government and that of Bavaria had commissioned state development bank KfW to conduct due diligence on the company – a requisite for loan clearance. The news effectively jump-started efforts that had appeared to stall in late April. At that time, the eVTOL startup reacted negatively to the unexpected setback with veiled threats it would look for financing elsewhere.

The startup initially suggested it might consider moving its eVTOL development and production activities to other nations if that proved more beneficial. Then, earlier this week, Lilium said it was in “advanced discussion on plans to expand its high-volume production capacity with an industrial footprint in France,” as well as “potential government subsidies and loan guarantees” from French actors.

Word yesterday that both national and state agencies it had been negotiating with on loans in Germany had resumed work led some observers to question whether Lilium had managed to scare German officials back into action with the French alternative. Either way, the eVTOL maker now says it expects “to receive guarantees” from authorities in its home market clearing the KfW loan, “the exact amount of which is yet to be determined.”

The turn of events appears to indicate all parties in the talks are focused on keeping Lilium and its next generation eVTOL tech development firmly rooted in its domestic market – for business and reasons and national interests.

“We would like to thank those responsible in Berlin and Munich for their decision and the constructive cooperation over the last few weeks,” said Lilium CEO Klaus Roewe. “We expect due diligence to be swift as transparency is a daily routine for us as a listed company… German government support is not only about creating a level playing field with the USA and China, but also about Germany signaling to the financial markets that innovations and new technologies are supported in Germany.”