Electric aircraft startup Lilium hopes for state aid from France

Lilium made the announcement as part of the ‘Choose France’ economic summit in Versailles, with which French President Emmanuel Macron wants to attract foreign investors to the country.

In order to receive the state aid, Lilium, which is based in Munich, would have to set up a production site in France. The company is currently looking at several possible locations in France, including the aerospace and battery production stronghold of Nouvelle Aquitaine, to expand its industrial footprint, with talks expected to be finalised in the coming weeks. Among the many reasons in favour of France, Lilium is particularly attracted by the country’s well-established aerospace industry, expertise in electromobility, highly skilled workforce and supportive government environment. With an estimated total investment of up to €400 million over several years, Lilium would have the potential to create up to 850 new direct jobs with this expansion of its industrial footprint.

Meanwhile, it remains to be seen whether Lilium will also receive aid in Germany. The German government and the state of Bavaria have commissioned the state development bank KfW (Kreditanstalt für Wiederaufbau) to carry out a due diligence review. Depending on the outcome, Lilium could receive state guarantees as collateral for a KfW loan, the amount of which has yet to be determined. However, Lilium is aiming for a loan volume of at least 100 million euros.

“We would like to thank those responsible in Berlin and Munich for their decision and the constructive cooperation over the last few weeks,” Lilium CEO Klaus Roewe said. “We expect due diligence to be swift as transparency is a daily routine for us as a listed company.” Roewe continues: “Electrification is in strong public interest as a contribution to the necessary decarbonization of the industry. 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.”

Production of the Lilium Jet began in 2023 with a small series at Lilium’s headquarters near Munich. With the entry into service of the Lilium Jet planned for 2026, the company is preparing for larger-scale production to meet the expected global market demand. Lilium says it has an order pipeline of more than 780 Lilium Jets, including firm orders and letters of intent from operators in the United States, South America, Europe, Asia and the Middle East.

lilium.com (France), lilium.com (KfW)