Vertical Aerospace has activated an automated battery production line at its Vertical Energy Centre, marking a critical shift from prototype testing to manufacturing scale for its Valo electric aircraft. The facility, which opened in 2023, now operates with aerospace-grade automation to produce battery packs for the company's seven certification aircraft and early commercial production phases, with commercial service targeted for 2028. The move signals a fundamental change in how electric aviation companies approach manufacturing. Rather than outsourcing batteries to third-party suppliers, Vertical is building proprietary battery technology in-house, a strategy that reduces supply chain risk and creates long-term revenue opportunities beyond initial aircraft sales. Why Does Battery Manufacturing Matter for Electric Aircraft? For electric vertical takeoff and landing (eVTOL) aircraft, batteries are not just a component; they are the heartbeat of the entire system. Vertical's proprietary batteries have demonstrated industry-leading performance, delivering up to 1.4 megawatts of peak power during flight testing. This level of performance is critical because it directly determines how far the aircraft can fly, how quickly it can respond to pilot inputs, and ultimately, how safe and reliable the aircraft becomes in real-world operations. The 15,000 square foot Vertical Energy Centre has been upgraded with automated manufacturing processes designed to improve efficiency, consistency, and battery performance. This automation is essential because aerospace-grade batteries must meet extraordinarily strict tolerances; even tiny variations in cell chemistry or assembly can compromise safety or performance. How Does Battery Production Create Revenue Beyond Aircraft Sales? Here's where Vertical's strategy diverges from traditional aircraft manufacturers. While companies like Archer and Joby focus primarily on selling aircraft, Vertical is building a recurring revenue model around battery replacement and maintenance throughout the aircraft's operational life. - Lifecycle Revenue: Vertical expects to supply approximately 20 battery packs per aircraft over its operational life, creating predictable revenue streams long after the initial aircraft sale. - Fleet Scale Economics: By 2035, Vertical expects to have supplied up to approximately 45,000 battery packs across its aircraft fleet, generating substantial recurring income. - Supply Chain Control: By manufacturing batteries in-house, Vertical maintains control over quality, pricing, and availability, reducing dependence on external suppliers. - Competitive Differentiation: Proprietary battery technology serves as a key value driver for the business, distinguishing Vertical from competitors who rely on off-the-shelf battery solutions. This approach mirrors strategies used in the automotive and aerospace industries, where aftermarket parts and maintenance contracts often generate more profit than the initial vehicle sale. What's the Timeline for Scaling Production? Vertical is taking a phased approach to manufacturing expansion. The current pilot production line will support certification testing with the UK Civil Aviation Authority (CAA) and the European Union Aviation Safety Agency (EASA), while also providing capacity for the first phase of commercial production following certification. A second facility, Vertical Energy Centre 2 (VEC2), is expected to open later this year and will triple battery production capacity. The new 30,000 square foot facility will serve as a dedicated powertrain hub adjacent to the existing site. By 2027, Vertical expects to have invested £6.4 million, or approximately $8.5 million, across both VEC and VEC2 facilities. The company is also expanding its workforce and footprint in the South West of England, where it currently employs approximately 450 people. As production scales, Vertical expects the number of highly skilled jobs associated with its manufacturing ecosystem to rise to at least 2,220 by 2035. This represents a significant economic multiplier effect, creating not just assembly jobs but engineering, quality control, and supply chain positions. How Does This Strategy Position Vertical Against Competitors? While competitors like Archer and Joby have pursued partnerships with established aerospace suppliers for major components, Vertical has chosen to develop and manufacture its core technology in-house. This strategy carries both advantages and risks. The advantage is control; Vertical can optimize battery performance specifically for its aircraft design without compromising to meet the needs of other customers. The risk is capital intensity; building manufacturing facilities requires significant upfront investment. Vertical's partnerships with tier-one aerospace suppliers including Honeywell, Aciturri, and Syensqo focus on other aircraft systems, while batteries remain a core in-house technology. This hybrid approach allows the company to leverage established aerospace expertise while maintaining proprietary control over the technology that most directly impacts aircraft performance and safety. The company has approximately 1,500 pre-orders of the Valo aircraft from customers across four continents, including American Airlines, Avolon, Bristow, GOL, and Japan Airlines. These pre-orders provide both validation of market demand and a revenue target that justifies the manufacturing investment. By bringing battery production in-house and scaling manufacturing capability in parallel with certification timelines, Vertical is positioning itself not just as an aircraft manufacturer but as a vertically integrated aerospace technology company. This strategy mirrors the approach taken by established aerospace leaders and suggests confidence that the eVTOL market will mature into a sustainable, long-term industry.
