Archer Beats Out Joby for Lilium eVTOL Patents

Archer Aviation secures about 300 patents covering ducted fans, propellers, engines, and more.

Archer Aviation eVTOL developer
Air taxi developer Archer Aviation has secured patents covering everything from ducted fans to aircraft design. [Courtesy: Archer Aviation]
Gemini Sparkle

Key Takeaways:

  • Archer Aviation acquired approximately 300 advanced air mobility patents, including key ducted fan technology, from the bankrupt German eVTOL developer Lilium for $21 million.
  • This strategic move expands Archer's product roadmap, allowing it to explore new sectors like light sport, regional air mobility, cargo, and defense, supported by its strong funding.
  • The acquisition highlights a broader trend of consolidation and financial struggles within the eVTOL industry, as many companies face difficulties while better-capitalized firms acquire assets.
  • Despite industry challenges, leading eVTOL developers like Archer are positioned to benefit from new regulatory agreements and significant government investments in advanced air mobility.
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Electric vertical takeoff and landing (eVTOL) aircraft developer Archer Aviation just got its hands on a fresh set of advanced air mobility (AAM) blueprints.

The California-based company on Wednesday announced it secured about 300 patents from German eVTOL jet developer Lilium for close to $21 million, winning a competitive bid process that reportedly included competitor Joby Aviation. Lilium—which had been developing a seven-passenger model with ducted fan-based propulsion—shut down its operations in February after failing to secure financing that would have kept it afloat during the rigorous development process.

Archer, meanwhile, has raised more than $1.3 billion in the past 12 months alone. The developer wants to expand beyond its core passenger air taxi service—which could ferry spectators and athletes around the 2028 Olympic Games in Los Angeles—into sectors such as cargo and defense.

The patents Archer acquired from Lilium include the German company’s calling card—ducted electric fans, 30 of which were embedded in the wings of its Lilium Jet prototype. They also cover aircraft design, electric propeller and engine systems, battery management, and flight controls.

According to Archer, Lilium spent more than $1.5 billion developing these technologies, which it now has at its disposal. The company in a news release said the ducted fans, in particular, could open up “development in both the light sport and regional air mobility sectors,” hinting that they could wind up on a future aircraft. Archer is conducting crewed flight testing of its Midnight air taxi and is developing an autonomous, hybrid-electric model for civil and military logistics.

“Lilium’s pioneering work advanced the frontier of eVTOL design and technology, and we’re excited to bring their cutting-edge technologies into the fold at Archer as we advance our product roadmap,” Archer founder and CEO Adam Goldstein said in a statement.

Archer did not immediately respond to FLYING’s inquiry about its pursuit of a light sport aircraft (LSA). However, the FAA’s Modernization of Special Airworthiness Certification (MOSAIC) rule permits VTOL and electric aircraft that were previously excluded from the category.

Consolidation in the eVTOL Industry

Electric air taxi developers have made bold promises regarding their entry into service, with a few predicting they would begin flying passengers in 2024. But as those timelines extend—SMG Consulting, for example, predicts that Archer, Joby, and Beta Technologies will not launch commercial services until 2027—some are beginning to fold.

Archer’s acquisition of Lilium’s patents follows the purchase of the firm’s former battery plant by another German firm, Vaeridion, which it will use to develop a nine-passenger electric model called the Microliner. Dutch company Advanced Air Mobility Group is negotiating the purchase of Lilium’s Oberpfaffenhofen Airport (EDMO) test facilities near Munich.

Lilium is not the only firm to go under. Volocopter, another German developer, in March sold its assets to the Chinese parent company of GA manufacturer Diamond Aircraft for close to $11 million. Diamond is developing the eDA40, a derivative of its DA40 trainer.

In the U.S., eVTOL developer Overair—spun out of tiltrotor pioneer Karem Aircraft in 2019—has similarly struggled, with South Korean investor Hanwha Aerospace last year reporting a loss of more than $100 million on the $170 million it poured into the company, per online news site The Air Current. Archer in August acquired patents and employees from Overair as well as an approximately 60,000-foot manufacturing plant from Mission Critical Composites.

Joby too has been busy, purchasing the passenger business of Blade Urban Air Mobility for $125 million in August. Its acquisition of Xwing’s gate-to-gate autopilot system, Superpilot, last year followed Archer’s agreement for the integration of Boeing subsidiary Wisk Aero’s autonomy systems on future aircraft.

Archer, Joby, Beta, Wisk, and other VTOL developers stand to benefit from recent developments, including a multinational VTOL regulatory agreement, a Pentagon request for billions of dollars in autonomy investments, and the creation of the eVTOL Integration Pilot Program (eIPP).

The aforementioned manufacturers—as well as drone companies such as Elroy Air and flying car developers such as Alef Aerospace—plan to participate in the eIPP, which will comprise at least five public-private projects over three years. Transportation Secretary Sean Duffy has until March 11 to select the projects, which could include pilots of passenger and cargo delivery services.

Jack Daleo

Jack is a staff writer covering advanced air mobility, including everything from drones to unmanned aircraft systems to space travel—and a whole lot more. He spent close to two years reporting on drone delivery for FreightWaves, covering the biggest news and developments in the space and connecting with industry executives and experts. Jack is also a basketball aficionado, a frequent traveler and a lover of all things logistics.
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