Germany's Lilium mulls to manufacture jets in Saudi Arabia: CEO

Lilium, the developer of the first all-electric vertical take-off and landing (eVTOL) jet, is exploring the possibility of manufacturing its jets in Saudi Arabia, Al Eqtisadiah newspaper reported, citing CEO Klaus Roewe.

Lilium is currently working on the development of a support system for the deal to purchase 100 jets, signed with Saudia Group. This includes the manufacturing of some components and spare parts in Saudi Arabia until a full factory is established.

On the sidelines of Lilium's signing of an agreement with Saudia to purchase 100 jets at $4.5 million each, Roewe said Saudia is the first airline operator to sign a major deal in the electric jet-manufacturing sector.

He added that the company has invested approximately $1.5 billion so far to manufacture the first batch of jets.

More investments were needed in the first two years for technology development, the CEO said, noting that 100% of investments are currently directed towards development, transitioning to industrial production, and development of the jet manufacturing system.

Roewe indicated that global demand is expected to reach around 40,000 jets by 2035, and due to the uniqueness of this jet, the company will definitely capture a significant share of this demand.

Saudia and Lilium sealed an agreement on July 18 to purchase 50 confirmed Lilium Jets, with an option to buy an additional 50 later, according to data available with Argaam.