# Lilium aims to build 400 air taxis a year, seek grants Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-09-28 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: German Lilium Air Mobility's Plan for 400 Electric Jets Meta Description: German air taxi developer Lilium plans to produce 400 electric Lilium Jet flying shuttles a year, leveraging public support for research and dealing with URL: https://financedigest.com/lilium-aims-to-build-400-air-taxis-a-year-seek-grantshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-09-28t133811z2lynxmpei8r0o5rtroptp4lilium-ceo-1736815138803-compressed.jpg) PARIS (Reuters) – German air taxi developer Lilium Air Mobility plans to set up industrial capacity to make some 400 of its electrically powered Lilium Jet flying shuttles a year, while tapping schemes that provide public research support, its new chief executive said. Lilium is competing in a crowded market for electric Vertical Take-Off and Landing (eVTOL) vehicles, hoping to replace road trips or short hops by aircraft or helicopters. But the challenges of securing certification and funding the innovations such as fresh battery technology have weighed on the new sector. Lilium shares have [fallen 73% so far this year](https://www.financedigest.com/twenty-years-cash-isas-uk-fallen-short-expectations-alternatives.html "Twenty years on, cash ISAs in the UK have fallen short of expectations: what are the alternatives?"). “I am pushing hard (for) a production system for 400 aircraft. And if by good luck one day, we need 800 we will just duplicate it, not here (in Germany)…but where the big markets are,” former [Airbus executive](https://www.financedigest.com/boeing-airbus-executives-urge-delay-in-u-s-5g-wireless-deployment.html "Boeing, Airbus executives urge delay in U.S. 5G wireless deployment") Klaus Roewe told Reuters. Roewe joined the Bavarian start-up in August after experiencing what he described to Lilium’s shareholders on Wednesday as the “manufacturing hell” of ramping up [production of larger planes as head of the A320-family programme](https://www.financedigest.com/sme-productivity-programme-re-purposed-to-help-businesses-prepare-for-covid-19-economic-recovery.html "SME productivity programme re-purposed to help businesses prepare for Covid-19 economic recovery") at Airbus. Let’s size it and let’s see how we have to design a production system including the whole [supply chain](https://www.financedigest.com/ges-investors-seek-solutions-to-renewable-energy-supply-chain-challenges.html "GE’s investors seek solutions to renewable energy, supply chain challenges") for 400 aircraft,” Roewe said after a quarterly shareholder update. Lilium did not give detailed costs. The company is planning for the first time to tap standard public [sources of funds](https://www.financedigest.com/private-equity-funds-approach-italys-serie-a-to-explore-media-rights-deal-sources.html "Private equity funds approach Italy’s Serie A to explore media rights deal -sources") such as research grants, Roewe said. He did not [say where any public funding](https://www.financedigest.com/funds-from-electricity-levy-could-help-german-households-says-renewables-association.html "Funds from electricity levy could help German households, says renewables association") might come from nor what sums might be involved. Aerospace [firms typically tap national and European Union programmes to bolster](https://www.financedigest.com/sp-global-acquires-firm-to-bolster-capability-to-track-commodity-shipments.html "S&P Global acquires firm to bolster capability to track commodity shipments") innovation, while Airbus has clashed with Boeing over the use of loans. Lilium said it was convinced its rechargeable lithium [batteries would meet](https://www.financedigest.com/german-chancellor-meets-auto-battery-bosses-in-mobility-summit.html "German chancellor meets auto, battery bosses in ‘mobility’ summit") performance and regulatory requirements. In February 2020 a battery fire destroyed a [technology demonstrator and led to testing](https://www.financedigest.com/ai-created-images-lose-u-s-copyrights-in-test-for-new-technology.html "AI-created images lose U.S. copyrights in test for new technology") delays. Roewe said the risk of a so-called thermal runaway could never be eliminated but would be contained to a small number of cells and remain well within certification criteria, which involve the same tiny [margins for error as for commercial](https://www.financedigest.com/omv-q3-retail-and-commercial-margins-increased-q-q.html "OMV: Q3 retail and commercial margins increased q/q") jets. Batteries could be a general sticking point in certification with [rules yet to be aligned between different regulators](https://www.financedigest.com/german-regulator-stays-vigilant-as-meta-changes-vr-headset-rules.html "German regulator stays vigilant as Meta changes VR headset rules"), according to aerospace and eVTOL publication The Air Current. The German firm plans a Lilium-branded regional transport network starting in Florida and a separate [stream of income coming from bulk sales of its fixed-wing hover jets to companies planning their own cargo or passenger operations](https://www.financedigest.com/denmark-invites-nord-stream-operator-to-help-salvage-unidentified-object.html "Denmark invites Nord Stream operator to help salvage unidentified object"). It expects to start receiving pre-delivery payments [next year](https://www.financedigest.com/1-in-10-workers-considering-a-career-change-in-the-next-year.html "1 in 10 workers considering a career change in the next year") as potential buyers place provisional orders, it said. [(Reporting by Tim](https://www.financedigest.com/tim-shares-slide-as-reported-grid-bids-disappoint.html "TIM shares slide as reported grid bids disappoint") Hepher; Editing by Mark Potter) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---