The German air taxi developer Lilium Air Mobility is planning to build industrial capacity to make around 400 of its electrically powered Lilium Jet flying shuttles a year.

The company’s CEO said Lilium is competing in a crowded market for electric Vertical Take-Off and Landing (eVTOL) vehicles. It hopes to replace road trips or short hops by aircraft or helicopters.

However, the challenges of obtaining certification and funding the innovations have weighed on the new sector. Reportedly, Lilium shares have plunged 73 per cent so far this year.

The company plans to tap standard public sources of funds such as research grants. Aerospace firms typically tap national and European Union programmes to bolster innovation, while Airbus has clashed with Boeing (NYSE:BA) over using loans.

Lilium said it was convinced its rechargeable lithium batteries would meet performance and regulatory requirements. In February 2020 a battery fire destroyed a technology demonstrator, leading to testing delays.

Founded by Sebastian Born, Daniel Wiegand, Matthias Meiner, and Patrick Nathen in 2015, Lilium GmbH is a Bavaria-based aerospace company. It is the developer of the Lilium Jet, an electrically powered personal air vehicle capable of VTOL flight.