Archer Beats European Bid to Buy Lilium’s eVTOL Patent Portfolio

Archer Aviation is acquiring about 300 patents from Lilium, an insolvent eVTOL aircraft manufacturer and former competitor, for €18 million ($21 million) after winning a competitive bid process, the California-based manufacturer announced on October 15. Lilium's insolvency administrator accepted Archer's bid in preference to another made by Europe-based Ambitious Air Mobility Group (AAMG), which has been trying to secure the assets for several months.

According to Archer, the patents it obtained from the German company pertain to various electric aviation innovations, including electric motors and ducted fans, high-voltage systems, battery management, aircraft design, and flight controls. With this acquisition, Archer now claims to have more than 1,000 patent assets in its intellectual property portfolio.

“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,” said Archer CEO Adam Goldstein. 

In a written statement, AAMG complained that the insolvency administrator, Pluta, had breached a written commitment that Lilium's assets would go to the highest bidder. The company, which is a former prospective customer for Lilium's six-passenger eVTOL vehicle, said it had lodged a bid for €23 million and then increased it to €30 million.

Rival Bidder Protests

The Netherlands-based group complained that Archer's offer is unsecured and insisted that had received a final purchase agreement at the end of September. It said it had completed all required escrow documents and provided audited bank guarantees in accordance with the process required by the insolvency administrator.

"AAMG is deeply disappointed that its higher, secured offer was apparently not presented transparently and consistently to the creditors' committee," commented the company's leadership team in a written statement. "This decision disregards the value to creditors, undermines German industry, and favors a bidder that has not demonstrated the same commitment to jobs or local economic impact."

The electric ducted fans that Lilium developed for the seven-seat Lilium Jet eVTOL aircraft could open up new opportunities in the light-sport and regional air mobility sectors, Archer said, hinting at the possibility of new aircraft types in its future. Archer is currently developing the piloted, four-passenger Midnight eVTOL aircraft and has plans to produce an autonomous, hybrid-electric defense drone in partnership with Anduril. 

Founded in 2015, Lilium burned through more than $1.5 billion developing the Lilium Jet before running out of cash in October 2024 and ultimately closing its business in February. Since then, bidders including Advanced Air Mobility Group (AAMG) in the Netherlands and California-based Joby Aviation have been eyeing the company’s various assets. Last month, German start-up Vaeridion announced it had acquired Lilium’s former battery manufacturing facility at Oberpfaffenhofen Airport near Munich.

In early September, another German start-up, Vaeridion, acquired Lilium's former battery manufacturing facility and secured access to test facilities at Oberpfaffenhofen Airport near Munich. Vaeridion is developing a nine-passenger fixed-wing electric aircraft called the Microliner.