Lilium said it has begun the industrialization phase of its eVTOL aircraft program and is on track to begin assembling its first type-conforming aircraft in 2023.

The Germany-based aviation startup also told analysts in a second-quarter earnings call on Sept. 28 that it plans to have its first crewed flight of a conforming aircraft in 2024.

“At this important phase in our company development, we continue to focus our energies on industrializing and certifying a robust aircraft at the highest safety standard,” said Klaus Roewe, CEO of Lilium. “We believe that we have a world-class product that will truly excite and delight our customers.”

The company also said it is confident it can achieve type certification by 2025, after delaying the certification timeline by 12 months earlier this year.

“We are confident with ’25, but we only know what we know today,” Roewe said. “This is a plan we have put forward because this is the best one we believe in. It has challenges, but it also has margins because if you set up a schedule that doesn’t have any margins, it’s condemned to fail from the beginning.”

Lilium still has many hurdles to clear before certification but also cited several milestones in a call with investors, including the first full transition from hover to wing-borne flight of its Phoenix 2 demonstrator.

The flight achieved a speed of about 100 knots (185 kilometers per hour or 115 miles per hour), Roewe said.

“The fact that the canard and the wing transition smoothly is really a historic technical achievement — but it’s more than that,” he added. “It’s also impressive that the transition …  precisely happened where the computer model predicted it would be.”

Battery performance

Lilium cited internal cycle tests that indicate the battery-aging performance will meet its launch target of more than 800 cycles, with additional independent testing underway.

“We continue to work with our technology providers to further improve cell performance and aging prior to the launch,” Roewe said.

Lilium has partnered with Customcells for a portion of its battery strategy, leveraging the German manufacturer’s high-volume production capacity and its expertise with automotive clients like Porsche AG.

“Automotive [manufacturing] is high yields, it’s high volumes, but it’s also low cost,” Roewe said. “We know exactly what amount of battery volume we are going to need, and we have worked out a plan with them.”

Confirming means of compliance

The next major certification milestone for Lilium is finalizing an agreement with the European Union Aviation Safety Agency (EASA) on its certification program, including means of compliance.

EASA is the main certifying body for the Lilium Jet, and means of compliance are the agreed criteria Lilium will use to demonstrate its aircraft meets European regulatory standards.

The two parties have agreed to about 72% of the means of compliance and are working to finalize the remaining 28%.

In parallel with the type certification program, Lilium is also working toward design organization approval (DOA), a necessary prerequisite to certification.

The company’s third DOA audit is scheduled for the end of 2022, with the fourth and final audit targeted for the first half of 2024.

In the meantime, Lilium continues to pursue partnerships with suppliers and sign memorandums of understanding (MOUs) with an eye toward the start of production.

The company has 483 jets under MOU and plans to begin signing firm orders with commercial customers in 2023.

Cash spending up slightly from Q1

Lilium reported a total cash spend of €63 million (US$61.8 million) in the second quarter of 2022, up slightly from €60 million (US$58.8 million) in the first quarter.

The company expects to see increased “supply or contracting activity” in the second half of 2022 as its development program advances, said Geoffrey Richardson, chief financial officer of Lilium.

“We are working to offset the slight rise in related cash spending through active budgetary controls, including headcount control,” he said. “We expect full-year 2022 total cash spend to be no more than €250 million [US$245 million].”

Lilium’s liquidity as of June 30, 2022, stood at €229 million (US$224.5 million), he said.

Limited edition reveal later this year

Lilium is citing demand among high-net-worth individuals for its decision to create a limited edition (LE) of its eVTOL aircraft with a tailored cabin and “dedicated premium service.”

The LE model is slated to be revealed later this year, with a target on prime locations like Brazil, Florida, southern France, southern Spain, Norway, Benelux, Germany and northern Italy.

“Lilium is clearly targeting prime locations with a high and proven demand for premium air mobility, where we have identified strong commercial partners,” said Sebastien Borel, senior vice president of commercial at Lilium. “The innovative nature of our partners, along with selected locations, will be key to Lilium’s commercial success.”

For its first phase of deliveries, Lilium is focusing on the premium general and business aviation market, which includes charter operators, fractional owners and private individuals.

The company predicts eVTOL aircraft will replace helicopters as private shuttles for some premium customers.

In the second phase, Lilium plans to roll out a six-passenger shuttle configuration to “address demand for regional scheduled services,” Borel said.

As with other eVTOL aircraft companies, the long-term goal is to democratize flight and make it accessible to everyone.

“Our ambition is to cut trip times to a fraction of what they are today when you travel on the ground, opening up a new level of connectivity for societies around the planet,” Roewe said.