An electrical jet start-up simply signed a $ 1 billion cope with an airliner

Lilium says its five-seat jets can fly up to 186 in an hour.

Lilium

Lilium, a German start-up that makes electric jets that can take off and land vertically, has announced that it will sell 220 of its vehicles to Brazilian airliner Azul for up to $ 1 billion.

The two companies announced on Monday that they plan to build an eVTOL (electric vertical takeoff and landing) aircraft network across Brazil by 2025.

“The plane we’re about to take off will fly 175 miles per hour,” Lilium’s chief strategy officer Alex Asseily told CNBC on Monday. “The range is 155 miles.”

The aviation industry is under increasing pressure to find new ways to power its airlines as policy makers publicly recognize the need to transition to a low-carbon society.

Lilium’s newest aircraft is a five-seater model, but the one that goes into series production and is sold to Azul will be a seven-seater model, Asseily said, adding that the production line is 50% complete.

Each Lilium jet will cost Azul about $ 4.5 million.

Azul is the largest domestic airline in Brazil in terms of cities served and daily departures.

Azul CEO John Rodgerson said in a statement that Azul’s brand, route network and loyalty program will help “create the markets and demand for the Lilium jet network in Brazil.”

Investors have so far backed Lilium, which competes with Airbus and BlackFly, with $ 300 million.

However, the company plans to raise an additional $ 830 million, which will result in a post-money valuation of approximately $ 3.3 billion. The money is collected through a SPAC with QellSPAC and is managed by the former Airbus boss Thomas Enders.

Tesla veteran Gabrielle Toledano and aviation manager Henri Courpron will join Lilium’s board of directors following the completion of Lilium’s merger with QellSPAC.

Clarification: This story has been updated to clarify that eVTOL refers to electric vertical takeoffs and landings.

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