(Yes, we know the correct pronunciation, but thought this was fun!)
Two potential sources of funding might provide the spark that jumpstarts electric VTOL manufacture Lilium’s growth.
Both a €100 million ($110 million) loan from the German government owned KfW Development Bank and a French government investment of €220 million would provide Lilium with the capital to expand production of its aircraft and provide vital jobs within the respective countries.
The German loan is conditional on Lilium meeting a “Minimum Funding Requirement” in which Lilium must obtain funding from other investors before KfW Development Bank will fund the first to tranches of the €100 million Government Convertible Loan. Lilium stated in its September 30th 2024 Form K-6 that they expect the approval for the loan to be approved “within the next few weeks”. Another “three to five weeks” would be necessary for completion & finalization of the loan, and more importantly, the cash infusion of the first tranches into Lilium’s accounts.
First Photo: Gates of Versailles Palace with Fleur de Lys ornaments (representing the Royals of France)
Above: logo of Munich based electric aircraft manufacturer Lilium
The French investment is a direct result of the “Choose France Summit” held on the 13th of May at the Château de Versailles, in which Lilium was in talks with the French government regarding financial investment into the company. Lilium could utilize France’s highly developed aerospace sector, its historical pedigree and bring 850 jobs to France while securing €220 million in necessary funding from the French government. France has a large supplier base in its aerospace industry, which would enable Lilium to acquire parts and other supplies at more competitive prices. France is also the world’s largest net exporter of electricity, with 65% derived from nuclear power, and 14% from wind and solar. Only 8% of France’s electricity is produced from fossil fuels. As France has already done with the electrification of the railways, France can power air travel with cleaner electric energy thanks to Lilium. Thus, Lilium could provide France with a green portfolio (or maybe blue, as in clean blue skies) within the aerospace sector that perfectly aligns with the French values regarding taking care of the planet.
It would be most ideal if both the German and French authorities would provide the financial investment critical for Lilium’s momentum in research/development and growth to continue at such a fast pace. However even €220 million from France would be enough to help Lilium fulfill its destiny in the aerospace industry. Frankly ⚜️ speaking, the authorities in charge of the lands of the Merovingians should look more closely at Lilium’s own logo as a sign of a blossoming flower stemming from an electric manufacturing plant that needs secure roots. They shouldn’t let this royal opportunity go to waste. We at VTOL buzz encourage the French government to Say “Oui” to the Fleur de Lys! ⚜️
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