Lilium, the electric aircraft manufacturer based in Germany, has filed for bankruptcy for the second time after failing to secure a promised €200 million in funding from an investor consortium.

Founded in 2015, Lilium aimed to develop electric aircraft capable of vertical takeoff and landing, with plans for its first manned flight scheduled for early 2025.

However, Boček's commitment reportedly did not materialize, leaving Lilium's financial situation precarious and its 770 employees without salaries for January and February 2025.

Lilium is not alone in facing challenges; competitor Volocopter has also filed for insolvency, and Airbus has paused its flight taxi project due to battery performance issues.

CEO Severin Tatarczyk submitted the insolvency application after waiting over two weeks for the promised capital injection, reflecting the company's dire financial circumstances.

The investor consortium, which was expected to inject the funds, included various investors such as CustomCells and Earlybird, with Slovak entrepreneur Marian Boček anticipated to contribute over €150 million.

Despite advocacy for government assistance from Chancellor Olaf Scholz and former Finance Minister Christian Lindner, the German government rejected a request for a €50 million loan guarantee.

The company initially filed for insolvency in October 2024 but continued operations while seeking new investors, which ultimately did not come through.

With the likelihood of a second rescue appearing slim, Lilium has indicated that it will cease operations, marking a significant setback for the ambitious electric aviation project.

The electric aircraft, often referred to as 'air taxis', were intended for various applications, including medical emergency services, but production readiness has not yet been achieved.

New investors, including German battery developer Customcells and startup financier 468 Capital, have been involved in discussions, but the future remains uncertain.

The complexity of the technology and the financial struggles faced by Lilium highlight the challenges within the electric aviation sector, as seen with other developers like Volocopter.