German eVTOL manufacturer Lilium files for insolvency again 

German electric vertical take-off and landing (eVTOL) aircraft manufacturer, Lilium, has filed for insolvency for the second time following a rescue deal collapse. 

The company initially filed for insolvency in October of last year due to an unsuccessful bid to secure emergency funding from the German government. 

However, on 24 December 2024, it signed a purchase agreement with an investor consortium Mobile Lift Corporation for the acquisition of key Lilium subsidiaries. 

A group of investors pledged approximately $209.3 million to revive the company, but the funds did not materialise, Lilium stated on Friday. 

With no viable alternatives, the company confirmed that it would cease operations. 

“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. 

“Given the situation, this is deeply regretful for all employees and Lilium Aerospace thanks them for their resilience and dedication.”

Furthermore, although the backers of Mobile Uplift Corporation were not officially disclosed, German media identified Slovakian entrepreneur and InoBat battery company head, Marian Boček, as the primary backer.

According to Germany’s Bild newspaper, Boček had intended to contribute €150 million. However, his contribution reportedly did not materialise. 

The company had been working towards launching Lilium Jet, its six-passenger eVTOL aircraft, in 2026. 

Over the years, investors provided approximately $1.56 billion for the development of the aircraft. However, the aircraft was not ready for mass production.