Lilium partners with Star Charge to develop best-in-class charging system for eVTOL operations
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Insights
The partnership between Lilium N.V and Star Charge represents a strategic move in the emerging eVTOL industry, which is expected to revolutionize urban and regional mobility. The order of 120 chargers is a significant investment in the infrastructure required to support eVTOL operations, indicating confidence in the sector's growth. From a market perspective, this collaboration could signal to investors that Lilium is progressing towards its service launch and is addressing the logistical challenges of eVTOL deployment, such as charging time and infrastructure compatibility.
For Star Charge, the deal with Lilium enhances its position in the eVTOL market, potentially opening doors to similar agreements with other eVTOL manufacturers. This could lead to an increase in market share within this niche and drive long-term revenue growth. Investors might view this as a diversification of Star Charge's client base and an innovative step into a new market segment.
Lilium's investment in charging infrastructure, specifically the high-performance chargers with liquid cooled cables from Star Charge, could have a positive impact on its financial performance by reducing charging times and increasing aircraft utilization rates. This efficiency gain is crucial for Lilium's business model, which relies on high-frequency, short-haul flights. The reduced turnaround times between flights will likely lead to higher revenue generation per aircraft, enhancing the company's profitability in the long-term.
Furthermore, Lilium's mention of expected material profit contribution from its Aftermarket Service Business, including electrical chargers, suggests a growing revenue stream beyond the initial sale of its eVTOL jets. This recurring revenue model is often favored by investors for its potential to provide stable, long-term income. However, it is important to monitor the execution of this aftermarket strategy and the actual market adoption of the Lilium Jet and its associated services.
The announcement underscores the environmental benefits of transitioning to electric aviation, as emphasized by both companies. The reduction in environmental impact could be a significant factor in the adoption of eVTOLs by the market, potentially leading to regulatory support and incentives. This transition aligns with global efforts to reduce carbon emissions and may attract investment from environmentally conscious stakeholders.
However, the true environmental impact of eVTOLs and their charging infrastructure will depend on the source of the electricity used. If the electricity is generated from renewable sources, the environmental benefits will be more pronounced. As the eVTOL industry scales, the demand for green electricity will likely increase, which could have broader implications for the energy sector and sustainable investing.
- Star Charge offers best-in-class high performance chargers with liquid cooled cables reducing charging time significantly
- Lilium orders 120 chargers from Star Charge for its own use and for customers’ vertiports
- Star Charge´s charging system will power Lilium’s ground and flight testing aircraft this year and will also be used at its delivery center
- Fully compatible with the globally accepted Combined Charging Standard (CCS) for eVTOL interoperability
SINGAPORE and MUNICH, Germany, Feb. 20, 2024 (GLOBE NEWSWIRE) -- Lilium N.V (Nasdaq: LILM), the developer of the first all-electric vertical take-off and landing (“eVTOL”) jet, has partnered with Star Charge, global leader in electric vehicle charging infrastructure and microgrid solutions, to develop, customize, and provide charging systems for its Lilium Jets. Today, at the Singapore Airshow, the companies announced that Lilium placed a first order of 120 chargers for its ground and flight testing aircraft, as well as for its aircraft maintenance and delivery center activities. Lilium will also provide charging stations to its customers investing into vertiports.
Lilium previously announced its adoption of the Combined Charging System (CCS) standard for rapid charging. Star Charge’s customized, fast-charging system will be fully compatible with the Lilium Jets and other eVTOLs compatible with CCS. The chargers will feature an extra-long liquid cooled charging cable for high-performance charging, suitable for varied landing infrastructure.
By using Star Charge’s CCS chargers, Lilium expects to reduce charging times significantly, in comparison to other chargers without liquid cooled charging cables. Reduced charging times will support reduced turnaround times between flights and provide higher utilization of the Lilium Jet.
“We are grateful to have received the first order of CCS chargers by a leading eVTOL manufacturer and look forward to commencing deliveries this year,” said Star Charge Europe CEO, Ji Cheng. “We look forward to partnering with Lilium to power the next generation of mobility, offering greater time-saving benefits to passengers while considerably reducing the environmental impact of travel.”
“Our partnership with Star Charge will support the Lilium Jet´s development and certification along with our customers’ ground infrastructure development. Its high performance and liquid cooled charging cable is a unique feature and Star Charge´s proven expertise in charging infrastructure is crucial for regional air mobility,” said Lilium CCO, Sebastien Borel.
Lilium began production of the Lilium Jet in late 2023, following its Design Organization Approval by EASA. As Lilium expects to enter into service in 2026 and as its global fleet size grows, Lilium expects material profit contribution in recurring revenue from its Aftermarket Service Business, including electrical chargers.
Lilium contact information for media:
Meredith Bell
Vice President, External Communications
press@lilium.com
Lilium contact information for investors:
Rama Bondada
Vice President, Investor Relations
investors@lilium.com
Star Charge contact information for media:
Dr. Harini Hariharan
Senior Manager, Business Intelligence and Marketing
h.hariharan@starcharge.com
About Lilium
Lilium (NASDAQ: LILM) is creating a sustainable and accessible mode of high-speed, regional transportation for people and goods. Using the Lilium Jet, an all-electric vertical take-off and landing jet, designed to offer leading capacity, low noise, and high performance with zero operating emissions, Lilium is accelerating the decarbonization of air travel. Working with aerospace, technology, and infrastructure leaders, and with announced sales and indications of interest in Europe, the United States, China, Brazil, the UK, the United Arab Emirates, and the Kingdom of Saudi Arabia, Lilium’s 950+ strong team includes approximately 500 aerospace engineers and a leadership team responsible for delivering some of the most successful aircraft in aviation history. Founded in 2015, Lilium’s headquarters and manufacturing facilities are in Munich, Germany, with teams based across Europe and the U.S. To learn more, visit www.lilium.com.
About Star Charge
Star Charge, a global leader in electric vehicle charging infrastructure and microgrid solutions, operates in 20 countries with manufacturing facilities in USA, Vietnam, and China. To contribute to the energy transition towards a more sustainable future, Star Charge focuses on evolving solutions through innovative technology in the e-mobility sector, aiming to build a mobile and efficient energy network.
Lilium Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the U.S. federal securities laws, including, but not limited to, statements regarding (i) Lilium N.V.’s and its subsidiaries (collectively, the “Lilium Group”) proposed business and business model, (ii) the markets and industry in which the Lilium Group operates or intends to operate, (iii) the Lilium Group’s agreement and collaboration with Star Charge, as described herein, (iv) the anticipated timing of the commercialization and launch of the Lilium Group’s business, including timing of the Lilium Jet’s entry into service, and the expected results of the Lilium Group’s business and business model; (v) the Lilium Jet’s ability to use CCS chargers and Star Charge’s CCS chargers ability to reduce charging times for the Lilium Jet; and (vi) Lilium’s expectations with respect to the scope of its Aftermarket Service Business, its ability to generate revenue and profits from such business, and the significance of any related revenue and profits. These forward-looking statements generally are identified by the words “anticipate,” “believe,” “could,” “expect,” “estimate,” “future,” “intend,” “may,” “on track,” “plan,” “project,” “should,” “strategy,” “will,” “would” and similar expressions. Forward-looking statements are predictions, projections, and other statements about future events that are based on management’s current expectations with respect to future events and are based on assumptions and are subject to risk and uncertainties that are subject to change at any time. Actual events or results may differ materially from those contained in the forward-looking statements. Factors that could cause actual future events to differ materially from the forward-looking statements in this press release include those risks and uncertainties discussed in Lilium’s filings with the U.S. Securities and Exchange Commission (the “SEC”), including in the section titled “Risk Factors” in our Annual Report on Form 20-F for the year ended December 31, 2022, on file with the SEC, and similarly titled sections in Lilium’s other SEC filings, all of which are available at www.sec.gov. Forward-looking statements speak only as of the date they are made. You are cautioned not to put undue reliance on forward-looking statements, and Lilium assumes no obligation to, and does not intend to, update, or revise these forward-looking statements, whether as a result of new information, future events or otherwise.
FAQ
How many chargers did Lilium order from Star Charge?
What standard are the chargers compatible with?
What unique feature do the chargers have for high-performance charging?
What is the expected impact of reduced charging times on the Lilium Jet?
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