Vertical Aerospace secures long-term agreement for power distribution systems, reducing execution risk for its eVTOL aircraft.
Vertical Aerospace (NYSE: EVTL) signed a long-term supply agreement with Astronics for low-voltage power distribution systems, a critical component for its Valo electric vertical take-off and landing (eVTOL) aircraft. The deal aims to accelerate production and mitigate execution risks.
The company previously secured partnerships with Honeywell for flight control systems and Hyundai WIA for landing gear. Vertical Aerospace relies on established suppliers to ramp up production, contrasting with competitors like Joby Aviation, which pursue vertically integrated models.
Despite the agreement, Vertical Aerospace remains cash-burning with no earnings expected until at least 2026, maintaining dilution concerns for investors.