Eve Air Mobility has received $94 million in new equity financing from multiple investors to support the continued development and manufacturing of its eVTOL. The funding, which includes the issuance of new shares of common stock and warrants, includes participation from a diverse group of global industrial companies that include Embraer and Nidec. Nidec, which is supplying the electric propulsion system, has said it will make a minority equity investment of $20m.

“We appreciate the confidence that these investors are placing in Eve. The new equity, along with existing cash and credit lines, ensures Eve is well positioned as we continue to build momentum and advance in the development and manufacturing of our eVTOL,” says chief financial officer Eduardo Couto. “With the industry's largest pre-order book, with letters of intent for 2,900 aircraft and strong programme development partners, Eve has continued to demonstrate the opportunity that our company presents for both strategic and financial investors.”

The company entered into agreements, dated as of 28 June, 2024 for the issuance and sale of 23,500,000 new shares of common stock at a purchase price of $4.00 per share, the exchange of certain warrants for shares of common stock and the granting of warrants to certain investors. The private placement is expected to result in gross proceeds to Eve of $94 million, before deducting other offering expenses.

The equity funding is expected to close over the coming weeks. Additional details regarding the equity funding is included in a Form 8-K filed by Eve with the Securities and Exchange Commission.

Eve was launched as Embraer's eVTOL development project in 2017, then spun off into a separate company in 2020 and listed on the New York Stock Exchange in 2022. Following this investment, Embraer will still own over 80 per cent of Eve shares. Backed by the full support and certification expertise from Embraer, Eve is steadily progressing with aircraft development, with flight tests planned by the end of 2024 and type certification and the start of production slated for 2026. Eve is currently raising funds and strengthening its relationships with strategic suppliers ahead of type certification, which is considered the most difficult hurdle for eVTOL commercialisation.

In June 2023, Nidec established Nidec Aerospace, a joint venture with Embraer. Nidec envisions growing beyond supplying electric propulsion systems for eVTOL and into a wider range of aviation-related markets, including large industrial unmanned drones, next-generation hybrid aircraft and next-generation electric aircraft. The company aims to leverage its relationship with leading aircraft manufacturer Embraer to establish itself as an aviation technology leader with Nidec Group's small, lightweight and highly efficient motor technology.

This investment also furthers Nidec's plans to enter the infrastructure space in the aviation market to supply products such as chargers for electrified aircraft. Nidec ASI, a member of the Nidec Group, currently manufactures EV chargers that integrate ultra-fast charging technology with energy management systems and energy storage systems. Nidec aims to use this same technology and product offering to grow in the eVTOL and unmanned aerial vehicle infrastructure markets, where demand for rapid, large-capacity charging is critical. Nidec is highly rated by Eve for its various products and will be featured in Eve's eVTOL ground maintenance manuals as a recommended charger vendor. This will enable Nidec to navigate the high barrier to entry in the eVTOL infrastructure business because aircraft fleet operators prioritise safety when making purchasing decisions; they are therefore highly motivated to use the related products that are recommended by their aircraft manufacturer.

Vincent Braley, CEO of Nidec Aerospace, says: “We view this investment in Eve as a confirmation of our confidence in Nidec's aerospace strategy and an extension of our strategic partnership with Embraer. The global demand for electrified urban air mobility is expected to ramp up over the next few years, and Nidec is well-equipped to develop technology and make investments into the value chain that supports the cleaner, quieter and more efficient travel of the future.”

Eve CEO Johann Bordais adds: “Our future eVTOL customers are in good hands with Nidec from take off to touch-down. Sustainability and safety are our guiding principles at Eve, which is why we selected Nidec electric propulsion system to power our eVTOL aircraft and why we encourage fleet operators to use Nidec electric chargers to quickly and safely charge them.”