In a significant move that underscores the growing competition in the electric aviation sector, U.S.-based Archer Aviation has acquired the intellectual property of the defunct German electric aircraft startup, Lilium, for €18 million ($21 million).

Lilium, once one of Europe’s most promising electric vertical take-off and landing (eVTOL) innovators, ceased operations last year following multiple failed restructuring efforts. A final attempt by Mobile Uplift Corporation, a Europe-North America investor consortium, to acquire Lilium’s operating assets fell through, prompting a bankruptcy administrator to initiate a competitive bidding process.

Archer outbid Ambitious Air Mobility Group and Joby Aviation to secure more than 300 of Lilium’s patent assets, marking a major expansion of its technology portfolio. Joby Aviation later confirmed its participation in the bidding round.

Founded in 2015, Lilium had envisioned a vertical take-off and landing aircraft capable of reaching speeds up to 100 km/h. The company attracted over $1 billion in funding from high-profile investors including Tencent, and even secured an order for 100 electric jets from Saudi Arabia. However, despite its early promise and public debut via a SPAC merger with Qell in 2021, the company succumbed to financial pressures before producing a commercial aircraft.

The patents acquired by Archer cover a wide range of critical eVTOL technologies, including high-voltage power systems, flight control mechanisms, ducted fan innovations, and advanced aircraft design. According to an Archer spokesperson, these additions represent a “strong enhancement” to the company’s expanding intellectual property library, which now includes over 1,000 global patent assets.

While Archer has not disclosed specific plans for integrating Lilium’s technology, analysts suggest the electric ducted fan designs could broaden Archer’s capabilities beyond its original urban air mobility focus — potentially into light-sport or regional electric flight markets.

Archer, which also went public through a SPAC merger in 2021, has steadily diversified its operations. In December, the company entered the defense sector through an exclusive partnership with U.S. defense technology firm Anduril, aimed at developing a hybrid gas-electric VTOL aircraft for critical defense missions.

The acquisition of Lilium’s patents may signal Archer’s intention to strengthen its technological base — and possibly expand its ambitions beyond air taxis — as the global race toward next-generation electric flight accelerates.

Source: Techcrunch