By Abhijith Ganapavaram
FARNBOROUGH, England (Reuters) - Germany-based Lilium plans to begin studying possible air-taxi assembly sites in the U.S. later this year with a goal of having a plant up and running by early 2029 to get a foothold in the one of the world's largest markets, its CEO said.
Lilium plans to finalise the site next year and expects to invest "250 million to 300 million plus" euros ($271-$325 million) in the final assembly line and improving production, Klaus Roewe told Reuters.
But the company "needs financial support for sure" to get the assembly line up and running, added Roewe, a former Airbus veteran.
As of the end of March, Lilium had 102 million euros of liquidity, but that was before it raised $114 million in capital that is needed to achieve its first manned flight.
Lilium is also in talks to raise money via loans with the help of German and French governments, with the latter tied to Lilium developing and expanding its industrial footprint in France.
Lilium is one of the many entrants in the electric vertical take-off and landing (eVTOL) aircraft market that has attracted the attention of airlines and automakers.
Executives and analysts at the Farnborough Airshow noted that the industry has numerous technological and regulatory challenges to address before it can fly passengers and achieve profitability - something that has not been lost on some investors.
Lilium's U.S.-listed shares have fallen 21.7% to 92 cents this year, while peers Archer Aviation and Joby Aviation (NYSE:JOBY) are down 25.73% and up 0.45%, respectively.
Founded in 2015, Lilium is targeting the regional transport market with a 250 kilometer-range (155 miles) jet that can carry up to six passengers, unlike many rivals which are mainly looking at shorter trips between cities and suburbs.
Lilium is aiming for its jet to enter service in 2026.
($1 = 0.9239 euros)