Archer Aviation Acquires Lilium eVTOL Patent Portfolio to Boost Innovation

Archer Aviation Secures Key eVTOL Technology in Strategic Patent Acquisition from Lilium

The advanced air mobility (AAM) sector is undergoing a significant phase of consolidation, and intellectual property is proving to be the new currency. In a move that underscores this trend, U.S.-based Archer Aviation has successfully acquired the extensive patent portfolio of German eVTOL pioneer Lilium GmbH. Announced at the National Business Aviation Association (NBAA) 2025 convention, this acquisition marks a pivotal moment for Archer, substantially enhancing its technological arsenal and solidifying its position in the highly competitive electric aviation landscape.

The transaction saw Archer win a competitive bidding process to obtain approximately 300 of Lilium’s patent assets for €18 million. This portfolio is the culmination of nearly a decade of research and an investment reported to be over $1.5 billion by Lilium, a company once seen as a frontrunner in the eVTOL space. For Archer, this is more than just an expansion of its intellectual property; it’s a strategic absorption of cutting-edge innovations that could shape the future of its aircraft development and the broader AAM market. The move is also framed as a step to ensure U.S. leadership in a critical emerging technology sector, especially following the recent acquisition of another eVTOL company, Volocopter, by a Chinese buyer.

Bolstering a Technological Arsenal

The acquisition significantly expands Archer’s intellectual property holdings, bringing its total to over 1,000 patent assets worldwide. The acquired portfolio is not just vast but also diverse, covering a wide spectrum of technologies crucial for eVTOL aircraft. These innovations include ducted fans, advanced propeller systems, high-voltage systems, sophisticated battery management, and foundational elements of aircraft design, flight controls, and electric engines. This infusion of technology provides Archer with a powerful toolkit to enhance its current and future aircraft platforms.

Among the acquired assets, Lilium’s work on ducted fan technology is considered particularly valuable. Many in the industry believe it to be the world’s leading patent portfolio on the subject. This technology could be instrumental for Archer’s future development roadmap, potentially unlocking new capabilities in both the light-sport and regional air mobility sectors. The timing aligns with regulatory advancements, such as the U.S. Department of Transportation and FAA‘s modernization of the special airworthiness certification (MOSAIC) final rule in July 2025, which is designed to foster innovation in this very space.

Adam Goldstein, Archer’s founder and CEO, highlighted the significance of the deal, stating, “Lilium’s pioneering work advanced the frontier of eVTOL design and technology, and we’re excited to bring their cutting-edge technologies into the fold at Archer as we advance our product roadmap.” This sentiment reflects a broader industry acknowledgment of Lilium’s technological prowess, even as the company faced financial headwinds. The acquisition allows Archer to build upon a foundation that was, by many accounts, technologically ahead of its time.

Through this purchase, Archer gains key enabling technologies that bolster its current platforms, including what is believed to be the leading patent portfolio on ducted fan technology in the world.

A Landscape of Consolidation and Competition

The acquisition of Lilium’s patents did not happen in a vacuum. It is a clear indicator of a maturing industry where early innovators are either scaling up or being absorbed by better-capitalized competitors. Lilium, founded in 2015, faced significant financial challenges leading up to this point, including difficulties in securing financing that ultimately led to insolvency. The competitive bidding process for its intellectual property reportedly involved another major player, Joby Aviation, highlighting the perceived value of Lilium’s technological contributions.

This transaction is part of a larger narrative of consolidation within the AAM sector. As companies move from design and prototyping to the incredibly capital-intensive phases of certification and manufacturing, financial strength becomes paramount. Weaker players, despite their technological innovations, are becoming acquisition targets. Archer’s move positions it as a consolidator, strategically leveraging its resources to acquire valuable assets at a fraction of their original development cost.

By securing these patents, Archer not only enhances its own capabilities but also creates a higher barrier to entry for new competitors. Intellectual property is a critical moat in a field where differentiation is key. This strategic acquisition ensures that a significant body of pioneering eVTOL research remains under U.S. stewardship, a point Archer has emphasized. It strengthens the company’s competitive position against both domestic rivals and international players in the global race to define the future of urban and regional air travel.

Conclusion: The Path Forward

Archer Aviation’s acquisition of Lilium’s patent portfolio is a calculated and strategic move that reverberates through the advanced air mobility industry. For a relatively modest investment of €18 million, Archer has incorporated over a billion dollars’ worth of research and development into its own strategic roadmap. This not only accelerates its own innovation timeline but also reinforces its standing as a leader in the eVTOL space. The deal is a testament to the idea that in a pioneering industry, technological assets are as crucial as manufacturing capabilities.

Looking ahead, the integration of Lilium’s technologies, particularly in ducted fans and battery management, could unlock new performance efficiencies and design possibilities for Archer’s future aircraft. As the AAM sector continues to consolidate, the ability to strategically acquire and leverage intellectual property will be a defining characteristic of the companies that ultimately succeed. This acquisition is a clear signal that the race to commercialize eVTOLs is entering a new, more mature phase, where strategic asset accumulation is key to long-term viability and market leadership.

FAQ

Question: What did Archer Aviation acquire from Lilium?
Answer: Archer acquired Lilium GmbH’s portfolio of approximately 300 patent assets related to advanced air mobility for €18 million. These patents cover key eVTOL technologies like ducted fans, battery management, high-voltage systems, and aircraft design.

Question: Why is this acquisition significant for the eVTOL industry?
Answer: The acquisition is a sign of industry consolidation, where financially stronger companies absorb the innovations of struggling pioneers. It strengthens Archer’s technological leadership, particularly with what is considered the world’s leading patent portfolio on ducted fan technology, and reinforces the U.S. position in the global AAM market.

Question: How much had Lilium invested in the technology covered by these patents?
Answer: Lilium had reportedly invested over $1.5 billion in developing the technologies covered by the patent portfolio that Archer acquired.

Sources

• Archer Aviation