Vertical closes on government funding to anchor production in the UK

Final decision on “broad package” of investment, including grant of up to £10 million, is expected by year-end.

Bristol-based Vertical Aerospace has topped off its debut flying appearance at the show yesterday with a government pledge this morning on additional funding that would see the electric air taxi developer’s first full-scale factory located in the UK.

Vertical says it is in “advanced discussions” with the UK government over the “broad package” of funding, which would include a further grant of up to £10 million ($13.5 million) from the Department for Business and Trade.

This is designed to “anchor the first of its planned global full-production sites” in the UK.

Vertical is now working through a shortlist of four sites for the final assembly facility of the Valo electric vertical take-off and landing (eVTOL) aircraft and its battery manufacturing plant.

A final decision is expected before year-end, the company states.

In the early stages of ramp-up, Vertical will build the four-passenger Valo in refurbished hangars at its flight-test centre at Kemble airfield, while the batteries will be assembled at a new facility adjacent to its existing ‘Vertical Energy Centre’ near Bristol.

Additionally, the package includes a commitment to establish a “broad, cross-government programme” to support Vertical’s transition from prototype development to industrial scale-up.

This includes a memorandum of understanding (MoU) between Vertical and UK Export Finance to establish a framework around export-linked and customer financing facilities; continued support from Innovate UK; and “confirmed interest from the Ministry of Defence in the company’s hybrid-electric and autonomous capabilities”.

“This is a major vote of confidence from the UK Government in Vertical, in our aerospace sector and in the UK’s opportunity to lead the next generation of aviation,” says Stuart Simpson, Vertical Aerospace chief executive.

“The UK has backed us from the earliest stages of the programme, and today’s proposed support helps create a clear pathway from innovation to industrial scale-up.”

The department of business grant remains subject to the completion of legal, subsidy control, due diligence and ministerial approval processes, and the MoU with UK Export Finance is not legally binding.

Besides the potential government support, Vertical has plenty of reasons to be cheerful, having the previous day successfully completed its debut flight demonstration at the Farnborough air show – a first for an eVTOL aircraft.

Comprising a full end-to-end transition – taking off like a helicopter, switching to wingborne flight and back again – the 9min routine was flown by chief test pilot Simon Davies using the programme’s second VX4 prototype.