Volant Lands Largest Confirmed eVTOL Order, Secures $137 Million Credit Line
Volant, a Chinese developer of electric Vertical Take-Off and Landing (eVTOL) aircraft, has secured the largest confirmed order to date in the high-end commercial passenger eVTOL sector. The agreement, signed on August 26 with Agricultural Bank of China Financial Leasing Co., Ltd. (AgBank Financial Leasing), includes 10 confirmed orders and 110 intent orders for Volant's VE25-100 "Volant Sky" eVTOL aircraft, with a total value reaching 3 billion yuan (approximately 410 million USD).
This order brings Volant Aero's cumulative confirmed orders to 14 units, marking a step towards the commercialisation of its eVTOL technology. Unlike non-binding intent orders, confirmed orders involve a substantial deposit, signalling a firm commitment from both the buyer and the manufacturer. Volant Aero charges a deposit of 20% to 30% of the aircraft's price, which is around 25 million yuan per VE25-100 unit. This means the 10 confirmed orders alone are expected to generate over 50 million yuan (6.8 million USD) in deposits.
"A confirmed order with a deposit signifies that, as an eVTOL manufacturer, we bear a delivery responsibility, unlike an intent order, which is merely an intention. This represents a fundamental shift in nature, not just the amount," stated Dong Ming, founder and CEO of Volant. He added that the company aims to complete the delivery of these confirmed orders within the next 2 to 3 years, following the acquisition of the necessary Type Certificate.
Huang Xiaofei, Partner and Senior Vice President at Volant, highlighted the strategic importance of these deposits. "By collecting deposits, we lock in the aircraft delivery schedule and create a binding agreement for both buyer and seller. As the original equipment manufacturer, we will accelerate aircraft R&D, streamline production scheduling, and expedite airworthiness certification progress, transforming eVTOLs from concepts into commercial products."
This latest achievement builds on Volant Aero's previous successes in securing confirmed orders. In December last year, the company announced China's first batch of high-end commercial passenger eVTOL confirmed orders with China Southern General Aviation. This was followed by another confirmed order on January 15 this year from Jiangsu Yajie Aviation Group, marking the first such deal with a leading private general aviation enterprise in China.
The eVTOL industry has recently seen a surge in order announcements, often involving large intent orders. However, Volant emphasises the critical distinction. Dong Ming explained that the company is focused on building a commercial closed-loop network, with confirmed orders being a core element. "Intent orders and confirmed orders are arranged according to different stages of model development," he said. "For the first three years since Volant's establishment in 2021, we only accepted intent orders to validate market demand and acceptance of our aircraft design. As we moved into engineering development and production scheduling, with clear delivery targets and timelines, we began collecting confirmed orders from late last year."
Volant is taking a measured approach to confirmed orders, aiming for "no more than 20 units this year." Dong Ming elaborated, "Confirmed orders with deposits carry delivery obligations, even penalties. We want to ensure the smooth development, delivery, and commercial operation of our aircraft to prove its economic viability. In other words, confirmed orders should follow our pace; more is not necessarily better." The company prioritises selecting 2-3 "first launch users" with strong operational capabilities to ensure the safe introduction and operation of new aircraft.
In addition to the order, Volant also announced a strategic cooperation agreement with the Agricultural Bank of China Shanghai Branch, which will provide the company with a 1 billion yuan (137 million USD) bank credit line and comprehensive financial services. This new funding will support Volant's product R&D and commercialisation efforts.
This latest financial backing adds to Volant Aero's impressive fundraising record. By the end of July this year, the company had completed nine rounds of financing, raising nearly 1 billion yuan (137 million USD). Its investor roster includes prominent names like Shunwei Capital (under Xiaomi), Future Capital (known for its investment in Li Auto), and CDH Investments. Volant's financing practices were even recognised by China's Ministry of Industry and Information Technology (MIIT) as a "2024 SME Financing Demonstration Case."
