Lilium Seeks New Funding, Defends Battery Technology

German air taxi manufacturer Lilium Air Mobility said it was engaged in “active and constructive” discussions to raise more capital as it begins increasing battery-cell production.

“We are also in active discussions to secure additional funding and are very encouraged by the interest from potential investors and partners,” Lilium CEO Klaus Roewe said in a shareholder letter released on March 28, saying that the company is on track to complete and freeze the final design of its type-conforming aircraft.

The company also staunchly defended its battery technology in the wake of criticism that it requires more power in comparison to similar projects from other eVTOL firms.

“Independent tests have shown that our cell technology is on track to deliver the energy, power and charging cycles we require,” the letter said.

Despite backing its battery-cell technology, Lilium faces a tough road ahead as it seeks to obtain certification by 2025.

It is also contending with the fact that its share prices have plummeted 89% since the start of 2022, even though it raised $119 million from existing and new shareholders, along with partners such as Honeywell, in November.

At the end of 2022, the company had liquidity of approximately USD$223 million (EUR 206 million). It also has 640 potential orders and is on the lookout to sign deals with big corporations and private individuals.

Lilium CEO Klaus Roewe backed the company’s unorthodox hinged-engine design during a recent interview with Reuters, saying it gives the company a unique edge over its competitors as it doesn’t conform to traditional norms.

“I think what is different in Lilium, compared to others, is that we haven’t only taken something that more or less existed like a big drone or helicopter type of design,” he said. “You can make your engine become a lifting device, not only a fast device. If somebody said how do you design an unconstrained aircraft, it would look like that. Nothing else moves and it’s all in the software.

“Complexity should not be in the physical parts but should always be in the software part, because that’s the one you can change the fastest.”

Despite the former Airbus executive’s optimism, critics believe the unusual design could make it harder for Lilium to obtain certification for its eVTOL.

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