The first propulsion systems for the Lilium Jet eVTOL aircraft are expected to be completed during the second quarter of this year at the German manufacturer’s production line at Wessling. The company announced on Monday that it has established a dedicated propulsion unit assembly line with the support of automation and robotics systems specialist Schnaithmann Maschinebau.
The availability of the first propulsion systems allows Lilium to make progress in assembling the certification-conforming prototypes it intends to start flight testing later this year. The company aims to achieve EASA type certification by the end of 2025 and start delivering the six-passenger aircraft in 2026. The first prototype is close to the final assembly stage with a second following close behind.
Last week, the Nasdaq stock exchange notified Lilium that it is not in compliance with the requirement to maintain a $1 minimum bid price for its shares for a minimum of 10 consecutive business days. In a Securities and Exchange Commission 6-K filing, the company acknowledged that it has been given 180 calendar days, through August 20, to regain compliance with the listing rules. It may consider a reverse stock split of its Class A shares. At the close of trading on Tuesday, the company's shares were slightly up at 94 cents.
In financial results for 2023 published on Tuesday, Lilium reported its year-end unaudited liquidity as being €198 million ($218 million). During the second half of last year, the company reduced its cash spend to €150 million, which was markedly lower than the earlier guidance target of €170 million. For the first six months of 2024, it expects cash spend to be between €170 million and €180 million.
By comparison, rival eVTOL aircraft developer Archer Aviation earlier this week reported its liquidity as of the end of 2023 as being $625 million (including $464.6 million in cash and cash equivalents). It is expecting to spend up to $120 million in the first quarter of 2024 as it pushes to complete FAA type certification for its Midnight aircraft in time to start commercial operations in 2025.
Mulitple Partners Supply Propulsion Hardware
Several major subassemblies make up each propulsion system and these are being delivered to Lilium by Honeywell and Denso (electric motors), Aeronamic (fans), and SKF (electric motor bearings). Each of the Lilium Jet’s 30 ducted electric motors installed in the wing and canard is designed to deliver a power density of 100 kilowatts from hardware weighing just over four kilograms (a little under nine pounds).
Schnaithmann Maschinebau has provided the jigs and tools for the propulsion and aerostructures production lines. The German company is also supporting Lilium with workflow design.
“We are delighted to be able to move forward towards production of our jet propulsion system,” said Jan Nowacki, Lilium’s senior vice president for manufacturing. “The electric jet engine is a unique, core Lilium technology, critical for aircraft performance and for which we have secured not only a team of highly qualified system suppliers but also important intellectual property. With the support of Schnaithmann, we look forward to implementing state-of-the-art manufacturing solutions capable of being scaled up and replicated for high-volume production.”
During 2023, Lilium raised $292 million in additional capital from new and existing investors, including Earlybird Venture Capital, BIT Capital, and Frank Thelen. A letter to shareholders cited its strategic partnership and memorandum of understanding with Lufthansa as another key achievement of last year, along with sales agreements reached in Asia, the Middle East, and the U.S.
Lilium CFO Oliver Vogelgesang told an investors call on Tuesday that it received its first pre-delivery payments in 2023 and expects to bank more this year as customers firm up commitments made so far for up to 730 aircraft. He said the company is now in advanced stage discussions for further funding with several government agencies in Europe and the U.S., as well as with possible new strategic partners. Negotiations are also progressing with several large airlines interested
Last week, Lilium launched a service organization to support Lilium Jet operators. The Power-On business unit will handle battery management, maintenance, flight operations, training, and digital solutions. According to the German company, it is the first eVTOL manufacturer to establish a comprehensive customer service organization in a support market for its aircraft that it expects to be worth at least $5 billion by 2035.
“For Lilium, 2023 was a pivotal year in which we transitioned from design to production of the Lilium Jet, confirmed our credentials as an aviation company by receiving Design Organization Approval from EASA, and secured important airline and battery cell production partnerships,” Lilium CEO Klaus Roewe commented. “2024 will be another key year for our company with the next important milestone in our aircraft development program, and the first flight of the Lilium Jet, targeted for the end of the year.”
