Vertical Aerospace, a UK-based eVTOL aircraft startup, is shifting its focus beyond air taxis. The company now aims to serve Europe’s growing defense and logistics markets with a new hybrid-electric aircraft.
This move comes at a pivotal time. With geopolitical tensions rising and European nations increasing military budgets, Vertical is seizing a rare opportunity.
A New Chapter: Hybrid Aircraft for Defense
On Monday, Vertical Aerospace announced its first public move into defense with plans to develop a hybrid-electric version of its VX4 aircraft.
The updated model will offer a range of up to 1,000 miles—ten times that of its fully electric predecessor. CEO Stuart Simpson noted the aircraft’s stealthy design, citing low noise and heat emissions ideal for military use.
The company also highlighted future autonomous capabilities and remote operations. Vertical is working with Honeywell to build advanced flight control systems tailored to defense requirements.
Background: From Commercial Air Taxis to Military Tech
Vertical has long been recognized for its ambitious plans in urban air mobility. The company has over 1,500 pre-orders for its VX4 aircraft from major airlines including American Airlines, Japan Airlines, GOL, and Bristow.
While its roots are in civilian transport, Vertical has been secretly developing a defense-capable variant of its aircraft for 18 months. The timing of this announcement coincides with a surge in European defense funding.
Europe’s Defense Landscape Is Evolving
Russia’s war in Ukraine and U.S. political uncertainty around NATO have spurred European nations to invest heavily in their own defense industries.
In 2023 alone, European defense tech startups secured over $1 billion in venture funding—a fivefold increase from 2018. Several specialized funds have emerged, including NATO’s €1 billion Innovation Fund and Estonia’s SmartCap.
With Lithuania committing up to 6% of GDP toward defense, much of it through venture capital, the continent is serious about military innovation.
Competitive Edge in a Consolidating Market
Vertical Aerospace now stands nearly alone in the European eVTOL sector. German rivals Volocopter and Lilium both exited the space in late 2024, leaving Vertical as the only local player with momentum.
This positions the company to fill an urgent demand for sovereign aviation solutions. Vertical’s hybrid-electric technology could be a key asset as nations seek to reduce reliance on non-European suppliers.
Funding, Efficiency, and Strategic Growth
To fully capitalize, Vertical will need more capital. The startup has raised $468.8 million to date—significantly less than U.S. competitors Joby Aviation ($2.82 billion) and Archer Aviation ($3.36 billion).
Still, Simpson emphasized efficiency. “We’ve spent $100 million a year while others spent $400–500 million,” he said. “We’ve developed this hybrid within our budget.”
Vertical plans to complete certification by 2028. Unlike its U.S. peers, it won’t scale manufacturing until designs are finalized. The first certified pre-prototype of the hybrid VX4 is expected next year.
What’s Next for Vertical Aerospace?
Flight testing of the hybrid aircraft will begin in 2026. For now, the company conducts tests with pilots, in line with strict UK aviation laws.
Although it hasn’t signed defense contracts yet, Vertical is in advanced talks with government agencies. Its status as the only European eVTOL company gives it leverage.
Simpson believes the startup’s unique position and focused strategy could make it a cornerstone of Europe’s defense tech future.
Conclusion
Vertical Aerospace is evolving from an urban air mobility pioneer into a key defense tech contender. Its hybrid-electric VX4 aligns with Europe’s defense priorities, as governments seek secure, homegrown solutions amid rising global tensions.
With the right funding and strategic partnerships, Vertical could redefine Europe’s aerospace landscape—proving that defense and innovation now fly hand in hand.
