Technology of the now-defunct electric aircraft startup Lilium has found a new home at Archer

The electric aviation industry is familiar with broken promises and stagnation as well as growth and renewed hope. In the latest development, Archer Aviation’s acquisition of the patent portfolio of the now-defunct and once-promising German electric aircraft startup, Lilium, marks a new turn in this story. 

Some of the innovative work that Lilium undertook before shutting down a year ago will now, through Archer, continue. Archer, it is said, will pay €18 million over million. This acquisition will anchor Lilium’s 300 patent assets and greatly reinforce Archer’s technological base and long-term strategies.

The Rise and Fall of Lilium

With the hype and investment Lilium managed to garner, the company still does not seem able to pay back the cash. This is part of the issue that has long tracked the company, and cash burn without revenue has all come to pass. The year 2015 marked the beginning of the startup company Lilium, giving it a monetized value of over

billion, backed by a hedge of excess cash, somehow. 

What Lilium wanted, though, was to capture the strategy and skies by aiming to produce the eVTOL aircraft revolution. Lilium showcased the Lilium Jet, sleek with speed and class, equipped with winged electric ducted fans to fly 100 km/h without breaking a sweat, quiet enough to listen to the birds, and clean enough not to harm the skies.

The types of capture orders Lilium can produce are astounding. Backed by industry diversifiers such as Tencent, Lilium was able to garner and secure orders that astonished traditional companies even. A mini fleet of 100 electric jets was assigned to Saudi Arabia, with Lilium trading a bolt of blue innovation. 

The company advertised a global electric jet public offering, along with a SPAC merger with another competitor, Qell Acquisition Corp, with Lilium giving it another shot to pay back the cash, an aim of the company’s hype.

The company has faced much attention from media and investment desks and has been captured by the misplaced, and sometimes hyped, fantasies of wealth while dearly attempting to keep the veil from their company to make it seem sophisticated.

Developing and acquiring aircraft technology is costly and time-consuming, and requires extensive testing along with regulatory compliance. In the case of Lilium, the company spent more than it was receiving without a product available for sale, which made sustaining operations impossible. The company ultimately declared bankruptcy and was the subject of unsuccessful attempts at restructuring the company.

How was the acquisition of Lilium’s patents by Archer completed?

Lilium’s assets were due for auction following the bankruptcy of the company. A court-appointed administrator oversaw the process. Other than Archer, companies such as Ambitious Air Mobility Group and Joby Aviation were also interested in the assets. In the end, Archer outbid all participants with a claim of 18 million euros for all patents relating to Lilium.

This acquisition is strategic for Archer as it patents relating to crucial technology for electric flight, such as flight controls, high voltage systems, advanced aircraft design, and ducted fans. The additional patents would also help consolidate Archer’s position with the rest of the world in the eVTOL market.

One more thing, Archer’s representative stated that the more than 1000 new patents add to the company’s IP assets, which are now available for strategic use, further enhancing its competitive position in the market.

What is the importance of Lilium’s technology to Archer?

Part of the legacy of Lilium that is most valuable is, without a doubt, its electric ducted fan technology, as other eVTOL developers use open-rotor designs.

The ducted fans provide increased efficiency and quieter operation, both valuable for urban and regional air mobility.

Archer has been concentrating on air taxis; short-range and electric aircraft designed for intercity and connecting downtown to airports. However, with Lilium’s technology, Archer could pursue new ambitions. There may also be opportunities for regional electric flight or light-sport aircraft, thus expanding beyond urban air mobility.

Although Archer has not explained how it plans to exploit the new patents, the acquisitions align with Archer’s expanding interests in defense and regional mobility.

Archer’s Expanding Portfolio and Strategic Realignment

Founded in the mid-2010s, Archer Aviation has also become one of the leading contenders in the eVTOL space. Similar to Lilium, Archer went public in 2021 through a SPAC merger and has since been progressing with their “Midnight” air taxi, designed for short flights of about 20 miles with four passengers.

Archer, however, is no longer constrained to being only an urban air taxi company. In December 2024, it began defense-related activities with the Anduril defense technology company. Together, they are designing a hybrid gas-and-electric VTOL aircraft for military and emergency use.

New patents acquired from Lilium could provide value to this program, especially if the company adds ducted fans or flight control systems to future defense models.

This shift in approach demonstrates Archer’s intent to diversify the business, minimizing dependence on a single sector and pursuing government and regional contracts, as well as other industries, which could entail stable revenue.

Landscape and Competitors: Joby, Archer, and the Rest

Competition in the electric aviation space continues to be fierce. Joby Aviation, the most prominent name in the field, confirmed it also participated in the bidding for Lilium’s patents. It is currently in the process of testing its plane in the US and has strong affiliations with the US Air Force.

Archer’s acquisition of Lilium’s patents from Joby demonstrates the high value these technologies provide to companies attempting to be the first in the eVTOL market. Companies continue to seek competitive advantages, whether through design, distance, noise, or flexible operations.

With Lilium’s technology in hand, Archer has gained advanced engineering, paving the way for a strategic shift which helps the company catch or even overtake its rivals in certain territories.

Future Challenges for Archer

Archer’s recent developments are exciting; however, there are several complex threats the company has to tackle head-on.

Building an aircraft capable of entirely autonomous vertical take-off and landing, which is both electric-powered and reasonably priced, is an immense task. Regulatory bodies’ approval procedures, as expected, take considerable time. 

Furthermore, the economics of eVTOLs are contingent upon the supply of ancillary services, public vertiports, and supporting infrastructure, such as public acceptance. eVTOLs flying in high-density urban environments are still a dream in most cities. 

With the money from Lilium’s patents, Alvin, Archer’s CEO, still functions under considerable pressure. He is still required to control the enterprise’s expenditure, increase the production level, and provide evidence that the eVTOLs are both efficient and economical. 

Assumption: A Revival of Innovation

Lilium’s case is illustrative of the fact that a lack of the necessary financing and the immense pressure of technological challenges can prevent the success of ideas in the field of aviation, no matter how genius and visionary they are. The technology will not, however, vanish into the ether. 

With the acquisition of Lilium Aviation by Archer Aviation, Lilium’s inventions, in particular in the areas of flight control and ducted fan systems, will be able to guide the successors of Lilium’s electric aircraft. This acquisition is more than a simple acquisition for Archer. It strategically expands the company’s electric vault by enhancing its intellectual assets for additional emphasis on regional transport, advanced defense, and other branches. 

As other companies in the electric air mobility race continue to innovate and pioneer new ideas, Lilium Aviation’s innovations come in handy, reinforcing the success of different companies and creating new opportunities.

Archer’s challenge now is to turn this collection of patents into real, flying products, while pursuing Lilium’s vision to take it to the skies.