Vertical Aerospace nears UK government funding to open first full-scale eVTOL production site

Bristol-based Vertical Aerospace is progressing toward securing government backing to establish its first full-scale factory in the UK for producing the Valo electric vertical take-off and landing (eVTOL) aircraft. The company confirmed it is in advanced negotiations with the UK government over a broad funding package that would include a grant of up to £10 million ($13.5 million) from the Department for Business and Trade. This funding aims to anchor Vertical's initial global full-production site firmly within the UK, reinforcing the nation's aerospace ambitions.

Vertical Aerospace is currently evaluating a shortlist of four potential locations for its final assembly facility. This site will support the production of the four-passenger Valo eVTOL aircraft, alongside a battery manufacturing plant. The company anticipates reaching a final decision on the facilities before the end of the year, underscoring urgency and momentum in scaling up production capabilities.

In the early production phase, Vertical plans to use refurbished hangars at its flight-test center located at Kemble airfield for the assembly of the Valo aircraft. Concurrently, battery assembly operations will be established at a new facility adjacent to its existing Vertical Energy Centre near Bristol, enabling close integration between airframe and battery production.

Beyond direct financial support, the government package includes a significant commitment to develop a broad, cross-government program facilitating Vertical's transition from prototype testing to industrial scale operation. This will include a memorandum of understanding (MoU) with UK Export Finance to outline frameworks for export-linked and customer financing facilities. Additionally, the package envisions ongoing support from Innovate UK and captures interest from the Ministry of Defence in leveraging the company’s hybrid-electric and autonomous technology capabilities.

Vertical Aerospace chief executive Stuart Simpson described the government backing as a major vote of confidence in the company, the UK aerospace sector, and the country’s potential to lead next-generation aviation. He emphasized that the UK has supported the program from its inception and that the new funding would establish a clear pathway enabling the move from innovation to industrial scale production.

The grant remains subject to several approvals, including legal, subsidy control, due diligence, and ministerial authorization. The MoU with UK Export Finance, while indicative of support, is not legally binding. Nonetheless, the comprehensive nature of the proposed funding package signals a high level of governmental commitment to fostering Vertical’s growth within the UK aerospace industry.

Vertical’s positive outlook is bolstered by the successful public debut flight demonstration of its Valo eVTOL at the Farnborough Air Show recently. This marked the first time an eVTOL performed a full end-to-end transition—in this case, taking off vertically like a helicopter, transitioning to wingborne flight, and returning to vertical landing. Chief test pilot Simon Davies piloted the nine-minute routine using the program’s second VX4 prototype.

The Farnborough demonstration represents a key milestone validating the Valo’s operational capabilities and programme maturity. It also reinforces the rationale behind the government's readiness to invest in vertical flight technologies that could define future urban air mobility and regional aviation markets.

Securing this UK-based production footprint not only promises to accelerate Vertical Aerospace’s manufacturing scale-up but also positions the UK advantageously in the burgeoning eVTOL market. The alignment of public funding, government support programs, and technological demonstration forms an integrated approach to driving industry leadership at a pivotal time for electric and autonomous aviation.