In the rapidly evolving world of electric vertical takeoff and landing (eVTOL) technology, Lilium, a Munich based leader in sustainable regional air mobility, finds itself at a critical juncture as of late September 2025. Known for its innovative Lilium Jet, a seven seater, all electric aircraft boasting speeds of up to 280 km/h and zero emission flights over 250 km, the company has faced a turbulent year marked by financial challenges and strategic shifts.
The global eVTOL market is projected to grow from $0.76 billion in 2024 to $4.67 billion by 2030, at a 35.3% CAGR, driven by solutions that address urban congestion and support decarbonization goals. Lilium’s journey reflects both the sector’s high stakes innovation and its inherent risks, with total investments in the space reaching $24.8 billion by early 2025. This article examines Lilium’s recent developments, from struggles with insolvency to hopes for revival, within the broader eVTOL ecosystem.
The Rise of Lilium A Vision for Regional eVTOL
Founded in 2015, Lilium emerged with a unique ducted electric jet engine design, promising quieter, more efficient flights than traditional helicopters or multirotor eVTOLs. The Lilium Jet, powered by 36 electric ducted fans in a wing like configuration, was designed for regional connectivity linking cities like Munich to Vienna in under an hour with zero operational emissions. Pre insolvency achievements included successful uncrewed flights in 2023, fuselage assembly for certification prototypes by early 2025, and partnerships with GE Aerospace for flight data analytics.
Lilium’s ambitions extended beyond urban air taxis, targeting underserved regional routes with orders for up to 1,000 jets from operators such as UrbanLink and Saudia. Backed by investors such as Tencent and Atomico, the company is expected to raise over €1 billion by 2024. However, rising development costs driven by redesigns for EASA certification and advancements in battery technology exposed financial vulnerabilities in a capital intensive industry.
Financial Turbulence, Insolvency, and Mass Layoffs
In February 2025, Lilium filed for its second insolvency after a failed €1.5 billion funding round and the withdrawal of key investor commitments from a Europe North America consortium. This led to the layoff of over 700 employees, nearly its entire workforce and halted operations, including prototype testing at its Oberpfaffenhofen facility. Administrators valued the company’s intellectual property (IP) and hardware at approximately €100 million, a significant decline from its peak valuation.
The fallout shook Germany’s startup ecosystem, with politicians calling for probes into mismanagement and employees protesting over unpaid wages totaling €5 million as of late September. Critics highlighted overambitious timelines and underestimated certification costs, a common challenge in the eVTOL sector, where 80% of startups are expected to fail to commercialize by 2030.
A Glimmer of Hope The AAMG Revival Bid
In August 2025, the Ambitious Air Mobility Group (AAMG), a Dutch led consortium including Earlybird Venture Capital, Fifth Wall, and aviation partners like UrbanLink, proposed to acquire Lilium’s core assets, IP, prototypes, supply chain, and facilities for an initial €250 million, with potential investments up to €750 million. AAMG, which had pre insolvency orders for 16 Lilium Jets, aims to resume development toward EASA type certification by late 2025 and achieve manned flights by early 2026.
The plan includes dual use applications, such as commercial air taxi networks in Belgium, France, and the U.S., as well as defense adaptations for battlefield logistics, tapping into Europe’s growing military technology budgets. Supported by partners like TUI Group for vertiport infrastructure, the bid aims to preserve jobs for up to 200 engineers and accelerate commercialization by 2027. An AAMG executive emphasized, “Lilium’s tech is too advanced to let die it’s a cornerstone for Europe’s AAM sovereignty.”
Stalled Negotiations Hurdles as of September 30, 2025
Despite the optimism, progress has been slow. By late September, AAMG reported “some progress” in negotiations, but the deal remains stalled over a required bank guarantee to secure the asset transfer. Legal complexities, including creditor claims and IP valuation disputes, have pushed the closing into October. Employee unrest continues, with protests in Munich over unpaid salaries, prompting parliamentary inquiries.
Skeptics question the business case: a GlobeAir CEO recently argued that eVTOLs face economic challenges due to high battery swap costs and infrastructure gaps, predicting limited adoption beyond niche routes. AAMG counters that Lilium’s regional focus offers a 50% cost advantage over helicopters, with breakeven projected at 300 annual flights per jet.
| Key Hurdles in Lilium’s Revival | Status as of Sep 30, 2025 |
| Bank Guarantee Submission | Pending; delays asset transfer |
| Employee Wage Disputes | Ongoing protests; €5M owed |
| IP Valuation | Under negotiation; estimated € 100 M. |
| Regulatory Alignment | EASA certification targeted for Q4 2025 |
| Funding Commitment | €250M initial; up to €750M total |
Lilium’s Technological Edge
The Lilium Jet’s proprietary technology distributes electric propulsion via ducted fans, enabling silent, efficient cruising at 280 km/h over 300 km on a single charge. Recent ground tests have confirmed a 90% reduction in carbon emissions compared to fossil fuel jets, aligning with EU Green Deal mandates. Integration with AI driven traffic management could further cut urban emissions by 20%, according to World Economic Forum projections for electrified air travel in 2025.
The Booming Global eVTOL Market
The eVTOL market is forecasted to generate $280 billion in revenue by 2045, with 30,000 eVTOLs in service globally, driven by urbanization and net-zero commitments. Bank of America predicts an 85% CAGR from 2025 to 2035, with civil adoption growing 62% through 2030. North America leads with $40 billion in scaling investments, but Europe lags due to fragmented regulations.
| eVTOL Market Projections | 2025 Revenue | 2030 Revenue | 2045 Revenue |
| Global Market | $1.0B | $4.67B | N/A |
| Urban Air Mobility | N/A | N/A | $280B |
| CAGR (Bank of America) | 62% (to 2030) | 85% (to 2035) | N/A |
Competitors Heating the Race
Lilium faces fierce competition. U.S. based Joby Aviation is nearing FAA certification for its five-seater, with Toyota backed production planned for 2026 and orders from Delta Air Lines. Archer Aviation targets Dubai launches, while China’s EHang scales autonomous operations in Asia. In Europe, Volocopter and Ascendance Flight Technologies are advancing hybrid models, with the latter targeting 2026 flights. Lilium’s regional focus could set it apart, but delays risk losing ground.
Implications for Europe’s AAM Ambitions
A failed Lilium revival would weaken Europe’s eVTOL leadership, already trailing U.S. and Asian competitors in funding and infrastructure. Success, however, could spark a €10 billion AAM cluster in Bavaria, creating 10,000 jobs by 2030. It highlights the need for unified EU policies, such as the proposed AAM Sandbox for vertiport testing.
Future Outlook Phoenix or Fade?
As September 2025 comes to a close, Lilium balances between collapse and resurgence. AAMG’s bid offers hope, but success depends on swift resolutions. In a market ripe for disruption yet fraught with risks, Lilium’s story highlights the dual nature of innovation: immense potential shadowed by financial realities. If revived, manned demos could occur by mid 2026, paving the way for eVTOLs in everyday skies. Investors and regulators are watching closely; the jet that dreamed of regional skies may yet take flight.
AQ about Lilium’s latest developments
What is Lilium?
Lilium is a German company making electric flying jets that can take off and land vertically. Their main aircraft is called the Lilium Jet. It’s designed to carry 4–7 people for short regional trips.
What is special about the Lilium Jet?
The jet uses small electric fans instead of big helicopter blades. This makes it quieter and safer. It can fly around 250 km per hour and cover 150–250 km on one charge.
What deals has Lilium made?
- Saudi Arabia’s Saudia Group ordered 50 jets with an option for 50 more.
- ArcosJet (a company in Dubai) also plans to buy 10 jets.
These deals show airlines believe in Lilium’s future.
When will the jet be ready?
- The first manned flight is planned for early 2025.
- Customer deliveries are expected in 2026.
They’re also building a testing center near Munich, Germany.
What problems does Lilium face?
- Money issues: Some parts of the company in Germany have gone into insolvency (like bankruptcy).
- Certification delays: It takes time to get government safety approval.
- Competition: Many other companies are making eVTOL aircraft, too.
Where will Lilium fly first?
They plan to start in Saudi Arabia, then move to Europe and the United States.
What’s next for Lilium?
- The first real flight with pilots (2025).
- Government safety approval.
- Delivering the first jets in 2026.
- Building flying taxi stations (called vertiports) for take-off and landing.
Final Thought
Lilium’s story feels like watching the future slowly unfold in real life. What started as an ambitious dream of quiet, all-electric flying jets is now turning into something very real. The company has faced its share of turbulence, from financial struggles to certification delays, yet it keeps moving forward with focus and determination. Its partnerships, like the one with Saudia Group, show that the world is beginning to believe in what Lilium is building.
If all goes to plan, the first manned flight in 2025 could mark a huge moment not just for Lilium but for the entire eVTOL industry. It is more than just a new way to travel; it is a step toward cleaner skies and faster, greener regional transportation. The idea of flying quietly between cities without the noise or pollution of traditional aircraft feels like something out of science fiction, but Lilium is trying to make it happen. The next few years will reveal whether the company can truly deliver on its promise, but one thing is certain: it has already pushed the boundaries of what people thought was possible in modern aviation.
