Vertical Aerospace (“Vertical” or the “Company”) (NYSE:EVTL), a global aerospace and technology company that is pioneering electric aviation, recently announced that it is in advanced discussions with the UK Government on a package of support to anchor the first of its planned global full-production sites in the United Kingdom. The Company is now progressing UK site down-selection for its Valo electric vertical take-off and landing (eVTOL) aircraft assembly and battery manufacturing facilities.
The package includes grant funding of up to £10m (USD 13.5m) in connection with Vertical finalising the down-selection of UK sites for its aircraft and battery facilities.
Vertical is now working toward a final siting decision, expected before the end of the year. Locating production in the UK will also streamline certification, with Vertical’s design and production organisation approvals located under the same regulatory framework with the UK Civil Aviation Authority (CAA).
The package also includes a commitment to establish a broad, cross-government programme to back Vertical’s transition from prototype development to industrial scale-up, including:
- confirmed interest from the Ministry of Defence in the defence applications for Vertical’s eVTOL, hybrid-electric and autonomous capabilities, with ongoing engagement to explore dual-use opportunities
- signed Memorandum of Understanding between Vertical and UK Export Finance to establish a framework for offering export-linked and customer financing facilities as Vertical fulfils its commercial pipeline
- continued support from Innovate UK, as part of the UK’s future of aviation, focusing on high-potential businesses like Vertical and helping the transition from prototype to commercialisation and growth
Vertical’s first full-scale aircraft final assembly and battery manufacturing facilities are expected to support around 700 direct jobs by 2030, alongside wider benefits for the UK aerospace supply chain, industrial capability and future aviation ecosystem.
The announcement builds on longstanding UK Government backing for Vertical through the Aerospace Technology Institute (ATI) programme and the Future Flight Challenge, which have helped the Company progress from early-stage technology development toward certification and industrialisation. With this package, direct UK Government grant support awarded to Vertical would total up to £48 million (USD 64 million).
Stuart Simpson, CEO of Vertical Aerospace, said:
“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. 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. It means we will continue to create high-value jobs, strengthen Britain’s advanced manufacturing base, and build aircraft that will be exported to customers around the world. We are grateful for that backing and committed to building the future of electric flight here in the UK.”
The aircraft is expected to be the first all-new aircraft designed and built in the UK in more than three decades. The UK is uniquely well-placed to benefit from the growth of advanced air mobility, with strong aerospace capability, a supportive regulator in the CAA, world-class engineering talent and a deep supply chain.
The Department for Business and Trade grant of up to £10 million remains subject to the completion of legal, subsidy control, due diligence and ministerial approval processes, and the Memorandum of Understanding with UK Export Finance is not legally binding.
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