Electric Jet Developer Lilium Shuts Down

Lilium’s two core subsidiaries ran out of cash in October, forcing it to file for “self-administration” proceedings with a court in Germany. In December, the firm achieved what it called a “breakthrough” in its search for a new investor. But on Friday it announced it filed for insolvency.

“While talks about alternative solutions are still ongoing, the chance for restructuring right now is highly unlikely, and therefore operations will be stopped,” Lilium said in a statement shared with FLYING. “Giving [sic] the situation, this is deeply regretful for all employees, and Lilium Aerospace thanks them for their resilience and dedication.”

Lilium said the funds that would have kept the business alive “have not materialized in time.” In October, the company sought a 50 million euro loan guarantee that would have triggered matching funds from the state of Bavaria, where it is headquartered. But the German parliament rejected the deal, forcing Lilium to seek nonstate investors. During that period, company staff reportedly worked without pay and resorted to GoFundMe campaigns to cover their living costs.

In December, a group of European and North American investors registered as Mobile Uplift Corporation (MUC) agreed to buy the assets of Lilium’s two subsidiaries. Lilium laid off all its employees and said they would be rehired “immediately” following the transaction, which it expected to close by the end of January. But the deal—which would have injected Lilium with about 210 million euros to relaunch the company—never materialized.

The firm’s Lilium Jet concept is designed to fly up to seven passengers on regional, city-to-city trips. Its unique propulsion system comprises 30 electric ducted fans embedded in the wings, pointing toward the ground during takeoff and landing but tilting forward during cruise.

Lilium had about 780 firm orders, reservations, options, and memoranda of understanding (MOU) for its flagship model, which it hoped to deliver in 2026 to customers worldwide. In the U.S., it planned for operations in South Florida, California, and Puerto Rico with partner UrbanLink Air Mobility. The firm had already begun assembling prototypes and was the first manufacturer to earn certification bases for an eVTOL design from both the FAA and European Union Aviation Safety Agency (EASA).

A few months after Lilium ran out of cash, another German eVTOL developer, Volocopter, followed suit and is seeking new investors. Airbus, meanwhile, in January paused development of its CityAirbus NextGen eVTOL, citing concerns with the progress of battery technology. Another electric aircraft manufacturer, Eviation, this week laid off most of its staff.

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