There are more solutions than obstacles. Nicolas Zart.
Filed under the “some ideas are too good to die”, the definitive move that signals a new trend in the Advanced Air Mobility (AAM) industry, is Archer Aviation successfully acquiring the core intellectual property (IP) portfolio of the now-insolvent German eVTOL pioneer, Lilium GmbH. Announced recently at NBAA-BACE, the transaction gives Archer a potential competitive bidding process, securing approximately 300 advanced air mobility patent assets for a reported €18 million (roughly $21 million).
This acquisition is far more than a simple business transaction; it is a strategic coup that dramatically strengthens Archer’s long-term competitive position and sends a clear message about the accelerating importance of intellectual property in the race to commercialize electric vertical takeoff and landing (eVTOL) aircraft.
The Lilium Legacy and the IP Prize
Founded in 2015, the Munich-based Lilium, was one fo the first eVTOL European company. It was also one of the earliest well-funded startup eventually spending more than $1.5 billion on research and development to pioneering a unique, visionary design. The fixed-wing “jet”, as it liked to call the aircraft was powered by 30 electric ducted fans embedded in its wings and canards. Although the design promised horizontal flight efficiency, its vertical take off (VTOL) capacity often left many wondering. Questions arose, such as should the company treat the eVTOL as an eCTOL first (electric conventionaltake-off and landing) aircraft, much the same way Beta did? Overall, noise reduction and a VTOL capacity garnered early investment despite presenting immense financial and certification challenges ahead.
Despite its technological ambitions, Lilium ran out of cash in late 2024 and officially ceased operations in early 2025, leading to the competitive sale of its assets. Here’s a high-level recap of its funding:
| Category | Amount (Approximate) | Notes |
| Total Venture Capital (VC) | $460 Million | Raised across multiple private rounds (Series A, B, C) from 2016 through 2020. Key investors included Tencent, Atomico, and Baillie Gifford. |
| SPAC Merger & Public Funding | $430 Million (Liquidity) | Lilium went public on the Nasdaq in September 2021 via a SPAC merger, which initially valued the company at $2.4 billion and provided a substantial cash injection. |
| Post-IPO Raises (2022-2023) | $311 Million | This includes a $119M raise in late 2022 and a subsequent $192M raise in mid-2023, demonstrating continued investor support even as costs mounted. |
The total amount Lilium had access to (VC + SPAC + subsequent raises) allowed them to commit to a massive, expensive development program.
Total Spent/Burned: The company ultimately burned through more than $1.5 billion in investor capital on research and development before running out of cash and ceasing operations in late 2024.
Accumulated Losses: By early 2024, Lilium’s accumulated losses since its founding were reported to be over €1.35 billion (approximately $1.47 billion).
Its patents, now acquired by Archer, cover a wide array of critical eVTOL innovations, including:
- High-voltage systems and advanced battery management.
- Electric propeller and engine systems.
- Sophisticated flight control systems and aircraft design.
Crucially, Archer now gains control of what it describes as the leading patent portfolio on ducted fan technology in the world. Archer acquired years of advanced, expensive R&D for a fraction of its development cost for a propulsion system known for its quieter performance within urban air mobility (UAM) operations.
A Contested Victory
The bidding process for Lilium’s IP was a first in the industry. It also show how potentially valuable these technical blueprints are to the top players in the industry. Archer reportedly beat out rival American powerhouse Joby Aviation, as well as the European-based Ambitious Air Mobility Group (AAMG), which had hoped to acquire Lilium’s operational assets rather than just the patents.
Archer’s victory heralds the inevitable long forseen, the start of the industry consolidation. Companies left with solid funding and a clear path to certification eventually absorbe key technical assets of those who couldn’t sustain the costly journey to commercialization. On the positive side of things, this ensures that Lilium’s innovative work will continue to influence the sector, albeit under a new owner.
The Strategic Impact for Archer and AAM
For Archer, the benefits of this acquisition are manifold and immediately felt:
1. Raising the IP Stack: The addition of Lilium’s portfolio boosts Archer’s total IP assets to over 1,000 patents worldwide. This creates a powerful IP Moat, strengthening their defensive legal position and providing significant leverage in future cross-licensing discussions or disputes.
2. Accelerating R&D and Diversification: By incorporating Lilium’s technology, Archer can shave years and millions off its own development timeline if it decides to pursue the duct-fan aircraft route in the future. CEO Adam Goldstein has hinted that the ducted fan technology could enable the development of new aircraft types beyond its current four-passenger Midnight air taxi, potentially moving into the light-sport and regional air mobility sectors.
3. Aligning with Regulatory Shifts: This potential diversification aligns perfectly with the FAA’s recent Modernization of Special Airworthiness Certification (MOSAIC) rule. This rule simplifies certification for smaller, innovative aircraft, a category that could significantly benefit from the quieter, more efficient ducted fan designs Archer now controls.
4. Cementing U.S. Leadership: With global rivals like Volocopter shifting ownership, securing this European technology portfolio reinforces the stated goal of Archer’s leadership to ensure the U.S. leads the world in critical eVTOL technologies. The acquisition is a clear win for the American AAM sector.
The Next Phase of Advanced Air Mobility
All disruptive technologies go through similar cycles, from hyped promises, the reality crashes, and eventually consolidations. The strategic acquisition by Archer is the first for AAM. After years defined by a flood of promising start-ups and diverse concepts, the market is now moving into a phase of consolidation and execution leaving a handful primed for the long run. Capital is starting again the flow toward the companies that can demonstrate both technical viability and a robust, defensible IP strategy.
Stakeholders must recognize that the competitive battleground is no longer just the sky; it is the patent office. As a reminder, roughly 97% of AAM vehicle patents were considered to be held by US companies. That number should be higher now. Conversally, most infrastructure startups are in Europe, which promises future US-Europe AAM coopoerations.
It’s no secret that Archer is locked in a frenetic competition with Joby. It hopes this latest move positions it as the top two competitor making it a technological powerhouse which can influence the design and certification trajectory of next-generation electric aircraft globally. Keep your eyes on the ball in 2026 as the focus shifts fully to execution: securing the exorbitant final certification, fundings scaling manufacturing, and launching safe, reliable commercial service.