Lilium’s board of directors is urgently reassessing funding options after the eVTOL aircraft developer was denied a €50 million ($54 million) loan guarantee from the German federal government. The loan was blocked by the budget committee of the German parliament in a meeting held in Berlin on Thursday.
In a 6-K filing with the Securities and Exchange Commission, Lilium reported that the loan had not been approved. The Munich-based company said it is continuing discussions with the Bavarian state government over a related loan guarantee “of at least €50 million.” Previous reports have indicated that the state loan is contingent on the federal loan being approved.
Lilium, which is listed on the New York Stock Exchange, has already raised around $1.5 billion in private sector investment. The company has reported multiple provisional sales agreements for its four- and six-passenger Lilium Jets with operators including airlines and private aviation companies.
On October 1, Lilium reported it had powered up its first full-scale prototype, which is being used to make final preparations for flight testing to begin with a second prototype in early 2025. The company aims to complete EASA type certification and start deliveries in 2026.
According to sources close to the Bundestag’s budget committee meeting, the German Green Party representative Paula Piechotta led opposition to the loan and blocked a vote being taken. Parliamentarians from the SPD, FDP, and CDU/CSU parties were reportedly in favor.
Lilium has previously confirmed talks with the French government around plans to relocate manufacturing of the aircraft to France.