Technology & Innovation
Lilium Bankruptcy and Ambitious Air Mobility Group Rescue in European eVTOL Market
Lilium’s bankruptcy and Ambitious Air Mobility Group’s rescue attempt highlight challenges in Europe’s growing eVTOL industry.
The collapse and potential revival of Lilium, a leading German electric vertical takeoff and landing (eVTOL) aircraft developer, has sent shockwaves throughout the advanced air mobility sector. Once a beacon of European aerospace innovation, Lilium’s journey from raising €1.5 billion to filing for bankruptcy twice within four months highlights the precarious position of eVTOL Startups in a rapidly evolving but capital-intensive industry. The emergence of Ambitious Air Mobility Group (AAMG) as a potential investor, with a declared €250 million secured and access to a further €500 million, underscores both the technological promise and financial volatility that define this emerging market.
This article examines Lilium’s history, the factors behind its insolvency, and the significance of AAMG’s intervention. By situating these developments within the broader context of the global eVTOL and air taxi market, we aim to provide a neutral, fact-based assessment of the risks, opportunities, and lessons for stakeholders in advanced air mobility.
As the urban air mobility sector is projected to grow from $4.59 billion in 2024 to $23.47 billion by 2030, Lilium’s fate serves as a test case for the viability of European ventures in a fiercely competitive, high-stakes market.
Lilium was founded by graduates of the Technical University of Munich a decade ago, with a vision to revolutionize urban transportation using electric aviation. The company quickly positioned itself at the forefront of the eVTOL movement, developing the Lilium Jet, a distinctive aircraft designed to address the growing congestion in metropolitan areas through regional air mobility.
Early investor confidence was strong. In March 2020, Lilium raised $240 million in a round led by Tencent, with support from Atomico, Freigeist, and LGT. This was followed by a SPAC merger with Qell Acquisition Corp in September 2021, resulting in a NASDAQ listing and further capital influx. Throughout its journey, Lilium attracted approximately €1.5 billion in funding from both European and international sources.
Organizationally, Lilium transitioned from a startup to a more mature aerospace Manufacturers, with notable leadership changes such as the appointment of former Airbus CEO Tom Enders to the board and the recruitment of Klaus Roewe as CEO in June 2022. These moves were intended to bolster the company’s ability to navigate the regulatory and operational hurdles of commercializing eVTOL technology.
The Lilium Jet stands out for its use of electric ducted fans, diverging from the open rotor or tiltrotor designs of many competitors. The aircraft is designed to carry six passengers plus a pilot, achieve a cruise speed of 250 km/h, and cover a range of 250 km. Its distributed propulsion system uses 36 electric vectored thrust fans, promising reduced noise, about 6 dB(A) quieter than helicopters at 100 meters, and increased operational efficiency.
Operationally, the Lilium Jet’s 45-minute charging time and compact footprint make it suitable for high-frequency, regional city-to-city operations. The aircraft’s design was intended to minimize infrastructure requirements and maximize utilization, critical for the economics of air taxi services. Despite technical advances, Lilium faced significant delays and cost overruns. The first manned flight, initially slated for spring 2024, was postponed due to technical and regulatory challenges. Nonetheless, the company made progress in safety testing, such as the successful nose landing gear drop test in November 2024, witnessed by compliance engineers as part of the certification process.
“The Lilium platform is the result of years of endeavour by some of the most talented engineers in the world. The technology developed in Bavaria is groundbreaking and both technically and economically feasible.” — Dr. Robert Kamp, CEO, Ambitious Air Mobility Group
Lilium’s capital-intensive development required ongoing fundraising. The company’s largest recent raise came in July 2023, with $192 million from German tech investors, institutional backers, and Tencent affiliates. This round was structured through a mix of public offerings and private placements, reflecting the complexity of funding advanced aerospace projects.
Despite these efforts, Lilium’s available resources fell short of the estimated €300–500 million needed to reach type certification in 2026. The company’s international structure, parent listed on NASDAQ, subsidiaries in Germany, headquarters in the Netherlands, provided access to multiple markets but complicated insolvency proceedings.
The funding gap became acute as development costs rose and regulatory timelines lengthened, setting the stage for the financial crisis that followed.
Lilium’s first insolvency filing in October 2024 was triggered by the German government’s refusal to provide a €50 million loan guarantee, which would have unlocked matching funds from Bavaria. This decision, rooted in concerns about investment risk and the role of public funding in private ventures, left Lilium unable to access €100 million in critical support.
The immediate consequence was the layoff of approximately 1,000 employees and the suspension of operations. A rescue attempt emerged in December 2024, when the MUC Mobile Uplift Corporation (later Lilium Aerospace) pledged over €200 million to retain 775 jobs and resume development. However, this deal collapsed after key investors failed to deliver, notably a €150 million commitment from Marian Bocek that never materialized.
The failed rescue left employees unpaid for weeks, prompting a GoFundMe campaign to support those affected. In February 2025, Lilium filed for bankruptcy a second time, highlighting the human and technological costs of financial instability in the sector.
“The risk for the federal government is far too high. If Bavaria wants to take on this subsidy, then it should do so alone.” — Frank Schäffler, FDP, German Parliament
In March 2025, Ambitious Air Mobility Group (AAMG) announced plans to acquire Lilium’s assets, including intellectual property, facilities, and key personnel. AAMG claims to have secured €250 million, with access to an additional €500 million, aimed at stabilizing and relaunching the Lilium platform. AAMG is a partnership between AirMobility Inc. of Japan and The Ambitious Group, with additional ties to VoltAero and Ascendance. The group had previously ordered 16 Lilium aircraft, demonstrating prior commercial interest. Their strategy includes retaining technical and certification teams, recognizing that much of Lilium’s value lies in its engineering expertise and regulatory relationships.
The AAMG proposal also emphasizes international expansion, particularly through collaboration with Japan’s AirMobility Inc. This reflects a recognition that future eVTOL success will require access to global markets, not just European operations.
The global urban air mobility market is expected to grow from $4.59 billion in 2024 to $23.47 billion by 2030, with air taxis leading the growth. Factors driving this include urban congestion, advances in battery technology, and increased investment in supporting infrastructure. The air taxi segment, in particular, is seen as the most promising for near-term commercialization.
However, growth projections have been revised downward by 0.4% due to trade tensions and tariffs affecting key components, such as lightweight composites and avionics. These economic realities pose additional challenges for companies seeking to bring eVTOL aircraft to market.
Regional disparities in government support are also significant. U.S. and Chinese companies benefit from substantial public and defense funding, while European firms like Lilium and Volocopter have struggled with less direct support. This has raised concerns about Europe’s competitiveness in the global eVTOL race.
“The urban air mobility market’s compound annual growth rate of 31% demonstrates strong investor interest, but also highlights the high risks and capital demands facing eVTOL developers.” — Aviation Week
The German government’s refusal to back Lilium’s loan guarantee was a decisive factor in the company’s collapse. The debate revealed deep divisions about industrial policy and the appropriate use of public funds to support innovation. While Bavaria was willing to contribute, its support was conditional on federal participation, which did not materialize.
On the regulatory front, Lilium maintained compliance with the European Union Aviation Safety Agency (EASA), and its certification progress remains a valuable asset for any successor. However, the complexity of achieving certification across multiple jurisdictions remains a major hurdle for all eVTOL companies.
Comparisons with the U.S. and Asia highlight the importance of coordinated government support, which has been a key factor in the success of competitors like Joby Aviation (backed by Toyota’s $500 million investment) and various Chinese entrants. The global eVTOL industry is highly competitive, with American and Asian companies generally enjoying more robust government and private sector support than their European counterparts. Lilium’s struggles are mirrored by those of Volocopter, another German eVTOL developer that filed for insolvency in December 2024 but continues to operate under provisional proceedings.
Lilium’s technology, based on ducted fans, distinguishes it from competitors using multicopter or tiltrotor designs. This diversity reflects the ongoing search for optimal solutions in a nascent industry. Lilium’s focus on longer-range, regional mobility contrasts with the short-hop urban approach of many rivals, but also required more advanced technology and longer timelines.
Despite reporting approximately 780 orders and reservations, Lilium’s financial woes led to order cancellations, such as ASL Group’s withdrawal of its reservation for six jets. The ability to convert early interest into revenue remains a challenge for all players in the sector.
AAMG’s proposed acquisition of Lilium’s assets could serve as a model for preserving high-value aerospace technology in the face of financial distress. The plan to retain key personnel and continue certification efforts is critical for maintaining momentum and leveraging Lilium’s existing progress.
Success will depend on AAMG’s ability to manage technical, regulatory, and commercial risks. The group’s €750 million funding plan appears robust, but the timeline for certification and commercialization remains tight. International partnerships, especially in Asia-Pacific, could provide the scale and revenue needed for long-term viability.
The Lilium case also raises broader questions about Europe’s industrial policy and the need for public sector support to compete globally. As the sector grows, aligning public and private interests will be essential for fostering innovation and maintaining technological leadership.
The financial collapse and potential rescue of Lilium encapsulate the promise and peril of the eVTOL industry. Despite technical achievements and substantial investment, the company’s fate was determined by a combination of regulatory, financial, and market challenges. The emergence of AAMG as a potential savior offers hope for preserving Lilium’s technological legacy and for continued European participation in the advanced air mobility sector.
Ultimately, the Lilium story highlights the need for coordinated public and private sector strategies, robust funding, and international collaboration to realize the full potential of eVTOL technology. The outcome of the AAMG acquisition will shape industry approaches to managing technological assets and corporate distress, with implications for stakeholders across the global aerospace ecosystem. What caused Lilium’s bankruptcy? Who is Ambitious Air Mobility Group (AAMG)? What is the significance of the Lilium Jet’s technology? How does Lilium’s crisis reflect on the European eVTOL industry? What are the prospects for Lilium under AAMG? Sources:
Lilium’s Financial Crisis and the Ambitious Air Mobility Group Rescue Attempt: A Comprehensive Analysis of Europe’s eVTOL Industry Challenges
Historical Background and Company Origins
Technology and Product Development
Financial Trajectory and Investment History
The Dual Bankruptcy Crisis
The Ambitious Air Mobility Group Emergence
Market Context and Industry Dynamics
Regulatory and Government Policy Impact
Global Competitive Landscape
Future Prospects and Strategic Implications
Conclusion
FAQ
Lilium’s bankruptcy was triggered by a combination of insufficient funding, escalating development costs, and the German government’s refusal to provide a €50 million loan guarantee, which blocked access to critical additional support from Bavaria.
AAMG is a partnership between AirMobility Inc. of Japan and The Ambitious Group, with additional European partners. They have announced intentions to acquire Lilium’s assets, retain key staff, and continue development with €250 million secured and access to €500 million more.
The Lilium Jet uses a unique ducted fan propulsion system, offering quieter operation and the potential for longer-range, regional air mobility. Its design and certification progress are considered valuable assets for any new owner.
Lilium’s struggles, along with those of Volocopter, highlight challenges faced by European eVTOL firms, including less robust government support compared to the U.S. and Asia, complex regulatory environments, and high capital requirements.
If AAMG’s acquisition succeeds, Lilium’s technology and team could be preserved, with a renewed focus on certification and commercialization. Success will depend on funding, regulatory progress, and effective international market development.
Aviation Week,
Lilium
Photo Credit: Lilium
Technology & Innovation
Eve Air Mobility Selects BETA Technologies for eVTOL Pusher Motors
Eve Air Mobility chooses BETA Technologies to supply electric pusher motors for eVTOL aircraft in a deal worth up to $1 billion over 10 years.
This article is based on an official press release from BETA Technologies and Eve Air Mobility.
In a significant move for the electric aviation sector, Eve Air Mobility has officially selected BETA Technologies to supply the electric pusher motors for its eVTOL (electric vertical take-off and landing) aircraft. The agreement, announced on December 2, 2025, represents a major step toward supply chain consolidation as the industry approaches commercialization.
According to the official announcement, this long-term agreement covers the supply of electric pusher motors for both Eve’s conforming prototypes and its serial production aircraft. Industry reports indicate the deal could be valued at up to $1 billion over a ten-year period, supporting Eve’s substantial order backlog of 2,800 aircraft.
The partnership marks a strategic pivot from vertical integration to a “best-of-breed” supply chain approach. By selecting BETA’s proven propulsion technology for forward flight, Eve aims to de-risk its certification timeline while retaining Nidec Aerospace as the supplier for its vertical lift motors.
To understand the significance of this supplier selection, it is necessary to examine Eve’s specific aircraft design. The company utilizes a “Lift + Cruise” configuration, which separates the propulsion systems used for hovering from those used for forward flight.
Under this architecture, the aircraft relies on two distinct motor types:
By separating these functions, Eve can optimize each motor for its specific phase of flight, high torque for the lift motors and high efficiency for the cruise motor.
According to technical details surrounding the deal, Eve is expected to utilize BETA’s proprietary motor technology, likely the H500A series currently used in BETA’s own ALIA aircraft. Key specifications highlighted in industry analysis include:
“These motors have been validated through thousands of flight hours on BETA’s own ALIA test aircraft, reducing the technical risk for Eve.”
, Industry Research Report
This agreement highlights a growing trend of cooperation between companies that might otherwise be viewed as competitors. Both Eve and BETA are developing their own electric aircraft, yet this deal positions BETA as a Tier 1 supplier to other Original Equipment Manufacturers (OEMs).
For Eve, the decision to source a critical propulsion component externally rather than developing it in-house offers clear strategic advantages. It allows the company to leverage BETA’s existing flight heritage, BETA has flown its motors extensively across the U.S., thereby potentially accelerating Eve’s entry into service, targeted for 2026.
With this selection, Eve has secured top-tier suppliers for the majority of its critical systems. The supply chain now includes:
The Era of “Frenemies” in Flight
We view this partnership as a maturing moment for the Advanced Air Mobility (AAM) sector. In the early days of the industry, many startups attempted to vertically integrate every component, from batteries to motors to airframes. Eve’s decision to purchase a motor from BETA, technically a competitor in the airframe space, signals that the industry is prioritizing certification speed and safety over proprietary exclusivity.
Furthermore, this deal validates BETA Technologies’ dual business model. By selling their propulsion tech to other OEMs, BETA diversifies its revenue streams beyond just operating its own ALIA aircraft. For investors, this reduces the “winner-take-all” risk often associated with new technology markets.
What is the value of the deal between Eve and BETA?
Reports estimate the agreement could be worth up to $1 billion over the course of 10 years, covering both prototype and serial production phases.
Does this mean Eve is stopping its own motor development? Eve is retaining Nidec Aerospace for its vertical lift motors. The agreement with BETA is specifically for the pusher motor used in forward cruise flight, allowing Eve to utilize off-the-shelf, proven technology for that specific function.
When is Eve expected to enter service?
Eve Air Mobility is currently targeting an entry into service (EIS) date of 2026.
Eve Air Mobility Taps BETA Technologies for Critical Propulsion Systems
Technical Breakdown: The “Lift + Cruise” Architecture
Distinct Propulsion Roles
BETA’s Motor Specifications
Strategic Implications for the eVTOL Market
The “Buy” Over “Build” Advantage
Supply Chain Maturity
AirPro News Analysis
Frequently Asked Questions
Sources
Photo Credit: Eve Air Mobility
Technology & Innovation
Vertical Aerospace Expected to Generate £9 Billion Revenue by 2035
Frontier Economics study projects Vertical Aerospace’s £9 billion revenue by 2035, supporting UK jobs and contributing £3 billion annually to the economy.
This article is based on an official report released by Frontier Economics and commissioned by Vertical Aerospace.
A new economic impact study released in December 2025 suggests that the United Kingdom’s electric aviation sector is poised to become a significant contributor to the national economy. The report, titled “Next-Gen Aviation: Made in the UK” and conducted by Frontier Economics, uses Bristol-based Vertical Aerospace as a primary case study to demonstrate the financial viability of electric Vertical Take-Off and Landing (eVTOL) aircraft.
Commissioned by Vertical Aerospace, the findings argue that zero-emission aviation is transitioning from a future ambition to a current economic driver. The data highlights substantial potential for high-value job creation and export-led growth, particularly within the South West of England’s historic aerospace cluster.
The Frontier Economics report outlines aggressive growth targets for Vertical Aerospace over the next decade. According to the study’s projections, the company’s annual revenues could approach £9 billion by 2035. A significant portion of this revenue is expected to come from international markets, with the report estimating that approximately 90% of sales will be exports.
Beyond direct revenue, the report calculates the broader economic benefits for the UK:
The study emphasizes the role of “next-generation” aviation in sustaining the UK’s skilled manufacturing base. Vertical Aerospace currently employs 479 people. However, the report projects that direct employment at the company will rise to approximately 2,200 Full-Time Equivalent (FTE) roles by 2035.
Frontier Economics notes that these roles command a “wage premium,” with salaries at the company reportedly reaching up to twice the average for the region and the wider sector. This data is presented as evidence that the shift to green aviation supports high-quality employment rather than just volume.
In an effort to highlight the “Made in the UK” aspect of the industry, the report analyzes procurement data from 2022 to 2024. It finds that over 60% of Vertical Aerospace’s procurement was retained within the UK. This domestic spending reportedly supported roughly 720 additional jobs in the Bristol area and generated £21 million in local spending during that period.
“Vertical’s activities are well-aligned with the UK government’s priorities for industrial strategy, innovation, clean growth and defence… With sustained investment and supportive policy, Vertical could help shape the next generation of global aviation.”
, Andrew Leicester, Executive Director for Public Policy at Frontier Economics
The release of this data comes as the UK aviation industry works to align with the government’s “Jet Zero” strategy, which mandates net-zero aviation emissions by 2050. This strategy relies on three pillars: system efficiencies, Sustainable Aviation Fuels (SAF), and Zero-Emission Flight (ZEF).
The Frontier Economics report positions Vertical Aerospace within the ZEF pillar, arguing that new entrants are essential for modernizing regional hubs like the South West. This aligns with previous findings from the government-backed FlyZero project, which identified a “once-in-a-generation” opportunity for the UK to capture the global zero-emission aircraft market.
The Push for Policy Support
While the projected figures of £9 billion in revenue and £3 billion in GVA are impressive, we note that they remain projections contingent on certification timelines and market adoption. The timing of this report is likely strategic. By quantifying the return on investment for the taxpayer, specifically the £800 million in potential tax revenue, Vertical Aerospace is building a case for continued or increased government support.
As the industry faces high capital costs associated with certification and scaling manufacturing, demonstrating a tangible “ripple effect” in the local supply chain is a critical lever for securing grants and favorable policy frameworks. The report effectively argues that supporting eVTOLs is not just an environmental decision, but a necessary industrial strategy to prevent the UK’s aerospace sector from stagnating.
Sources: Frontier Economics
Report: Vertical Aerospace Projected to Generate £9 Billion in Revenue by 2035
Economic Projections and Export Potential
Workforce and Regional Impact
Supply Chain Localization
Strategic Context: The “Jet Zero” Landscape
AirPro News Analysis
Sources
Photo Credit: Vertical Aerospace
Sustainable Aviation
Shell Secures Long-Term Deal for Egypt’s First Commercial-Scale Sustainable Aviation Fuel Plant
Shell partners with Green Sky Capital to purchase sustainable aviation fuel from Egypt’s first commercial-scale plant, targeting 145,000 tonnes annually by 2027.
This article is based on an official press release from Shell.
Shell has officially entered into a long-term agreement to purchase sustainable aviation fuel (SAF) from Green Sky Capital, a renewable fuel developer focused on the Middle East and North Africa (MENA) region. The deal, announced recently, secures 100 percent of the output from what is slated to be Egypt’s first commercial-scale SAF production facility.
This offtake agreement provides the necessary commercial certainty for investors to proceed with the construction of the plant. According to the company’s announcement, the facility is expected to commence operations by the end of 2027. Once fully operational, it will significantly bolster the supply of low-carbon fuels in the region and support the aviation industry’s broader decarbonization goals.
The partnership between Shell and Green Sky Capital marks a significant step in scaling global SAF availability. By committing to purchase the entire output of the facility, Shell is effectively de-risking the project for its developers and financiers.
The new plant is projected to produce up to 145,000 tonnes of SAF annually. In addition to aviation fuel, the facility will generate bionaphtha and biopropane as by-products. Shell reports that the use of these fuels is expected to contribute to a yearly reduction of up to 500,000 tons of carbon dioxide equivalent (CO2e) emissions.
While specific location details were not itemized in the press statement, industry data suggests the facility will be a cornerstone of Egypt’s renewable energy infrastructure. The operational target is set for late 2027, aligning with increasing global mandates for SAF usage.
Geoff Mansfield, Vice President of Low Carbon Fuels at Shell Trading, emphasized the strategic importance of the deal in a statement included in the release:
“By securing 100% of the plant’s output, Shell is strengthening its global supply network for low-carbon fuels and helping aviation meet decarbonisation targets.”
This agreement reflects Shell’s broader strategy to become a net-zero emissions energy business by 2050. The company has been aggressively expanding its logistics and supply capabilities to meet the growing demand from airlines facing both regulatory mandates and voluntary sustainability commitments. According to data released by the company, Shell has established itself as a dominant player in the SAF market:
Shell attributes this market position to long-term agreements with producers, strong customer relationships, and strategic investments in logistics infrastructure around key airports and terminals.
Green Sky Capital serves as the developer for this project. It is identified as a regional renewable-fuel development platform operating within the MENA region. It is important to note that this entity is distinct from the U.S.-based fintech firm GreenSky, LLC, and the Canadian venture capital firm GreenSky Ventures. This project is part of a wider consortium often referred to as the Egyptian Sustainable Aviation Fuel Company (ESAF), involving collaboration with Egyptian state entities.
The Critical Role of Offtake Agreements
At AirPro News, we observe that 100 percent offtake agreements, like the one signed between Shell and Green Sky Capital, are becoming the “gold standard” for greenfield SAF projects. The primary barrier to entry for new SAF facilities is often not technology, but “bankability.” Lenders are hesitant to finance infrastructure costing hundreds of millions of dollars without guaranteed revenue streams.
By locking in a buyer for the entire 145,000-tonne capacity before the plant is even built, this deal effectively bridges the gap between planning and execution. It signals a maturing market where major energy traders are willing to bet on long-term supply rather than spot-market availability. Furthermore, locating this capacity in Egypt diversifies the global supply chain, reducing the industry’s heavy reliance on production hubs in North America and Western Europe.
When will the new facility begin production? How much fuel will the plant produce? What is the environmental impact? Who is buying the fuel?
Agreement Overview and Production Capacity
Facility Specifications and Timeline
Executive Commentary
Strategic Context and Market Position
Shell’s Global SAF Footprint
About Green Sky Capital
AirPro News Analysis
Frequently Asked Questions
Operations are expected to commence by the end of 2027.
The facility is designed to produce up to 145,000 tonnes of Sustainable Aviation Fuel (SAF) annually, along with bionaphtha and biopropane.
The production and use of fuels from this plant are expected to reduce carbon dioxide equivalent emissions by up to 500,000 tons per year.
Shell has signed a long-term agreement to purchase 100% of the facility’s output.
Sources
Photo Credit: Shell
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