Vertical Aerospace Considers UK Factory Sites for Electric Air Taxis

Vertical Aerospace advances UK factory plans with £10 million government backing

Vertical Aerospace is selecting sites across the UK for full-scale aircraft assembly and battery manufacturing facilities. The Bristol-based electric aviation company announced the move alongside confirmation of up to £10 million in additional government grant funding. This brings total direct UK government support to £48 million if the latest funding is finalised.

The company says it is in advanced discussions with government over a broader support package designed to anchor its first global production facilities in Britain. Final site decisions are expected before the end of the year. Meanwhile, Vertical is already building initial manufacturing capacity in Gloucestershire, where it plans to produce around 25 aircraft annually at Cotswold Airport near Kemble.

Vertical manufactures the VX4, also known as Valo, an electric vertical take-off and landing aircraft designed to carry passengers on short urban and regional routes. The company has framed the UK production decision as critical to its certification timeline. Commercial certification is targeted for 2028, and building in the UK could simplify regulatory approval with the Civil Aviation Authority.

Government support package reaches £48 million

The latest £10 million grant sits within what Vertical describes as a broad package of government support. The company has confirmed that total direct UK government backing would reach £48 million once the new funding is approved. However, Vertical has not disclosed the full breakdown of prior government grants or whether additional indirect support forms part of the package.

According to the company, the funding is explicitly tied to finalising UK site selection for both aircraft assembly and battery production facilities. Vertical stated the government package is being advanced “in connection with Vertical finalising the down-selection of UK sites for its aircraft and battery facilities.” This suggests the additional funding is conditional on the company committing to UK-based manufacturing at scale.

The government has not published detailed terms for the support package. Nevertheless, The Guardian reported that the Ministry of Defence has expressed interest in defence applications of Vertical’s eVTOL, hybrid-electric, and autonomous capabilities. This indicates potential public sector demand beyond commercial passenger operations, which could strengthen the strategic case for UK production.

Gloucestershire site anchors initial production

Vertical has already identified Cotswold Airport in Gloucestershire as the location for initial manufacturing. The site will support production of approximately 25 aircraft per year as the company scales up from prototype testing to commercial output. This initial facility is separate from the larger production sites now under consideration.

The company also plans to establish battery production near its research and development base in Avonmouth, close to Bristol. Battery manufacturing is central to Vertical’s supply chain strategy. In-house battery production would reduce reliance on external suppliers and allow tighter integration between aircraft design and energy systems.

The Guardian reported that Vertical intends to build around 150 aircraft annually at the existing Kemble facility in Gloucestershire. However, the company is also evaluating larger sites capable of producing up to 1,000 aircraft per year and assembling battery packs on the same campus. BBC noted that Vertical aims to reach an output of 900 aircraft annually by 2035, which would require substantial additional capacity beyond the Gloucestershire site.

Site selection process continues across UK regions

Vertical has confirmed it is evaluating multiple UK locations for full-scale production. The company has not published a shortlist, but the decision is expected before the end of 2024. Site selection will balance factors including access to skilled labour, proximity to suppliers, space for expansion, and regional incentives.

The company has said it is also considering international locations. Nevertheless, the government support package appears designed to anchor the first large-scale facilities in the UK. Vertical’s statement emphasised that the funding is connected to UK site selection, suggesting government backing is contingent on domestic production commitments.

Regional economic development agencies may also play a role in the final decision. Large manufacturing projects typically attract local and regional support alongside national funding. Consequently, areas with existing aerospace clusters or battery manufacturing expertise may have an advantage in the competition for Vertical’s facilities.

Employment projections and economic impact estimates

Vertical has stated that UK production could create 700 direct jobs by 2030. The company has also cited analysis by Frontier Economics projecting up to 2,200 jobs and £3 billion in annual gross value added by 2035. These figures include both direct employment at Vertical’s facilities and indirect jobs across the supply chain.

Job creation on this scale would make Vertical a significant employer in whichever region secures the main production facilities. The company’s employment projections assume successful certification, commercial launch, and sustained growth in demand for electric aircraft. Therefore, the jobs forecast depends on multiple factors outside Vertical’s direct control, including regulatory approval timelines and market adoption rates.

The Frontier Economics estimates also assume substantial growth in the UK’s electric aviation supply chain. Battery production alone could support hundreds of jobs in manufacturing, engineering, and quality control. Similarly, aircraft assembly would require skilled workers in composite manufacturing, avionics integration, and final assembly processes. Consequently, the economic impact would extend well beyond Vertical’s direct workforce.

Certification timeline links production decisions to regulatory strategy

Vertical is targeting commercial certification in 2028. The company has indicated that manufacturing in the UK could simplify the certification process with the Civil Aviation Authority. This suggests Vertical sees regulatory proximity as a competitive advantage, particularly during the critical phase when prototypes transition to production aircraft.

The CAA must certify the VX4 before it can carry paying passengers. Certification involves rigorous testing of aircraft systems, safety protocols, and manufacturing processes. Consequently, having production facilities close to the regulator could accelerate approval timelines and reduce the complexity of coordinating between manufacturing sites and certification authorities.

Vertical’s certification strategy also has implications for European market access. The UK and European Union Aviation Safety Agency have mutual recognition arrangements for certain aircraft types. However, the specifics for eVTOL aircraft remain under negotiation. Therefore, Vertical’s decision to pursue UK certification first may reflect confidence in cross-recognition agreements or a strategic focus on UK and Commonwealth markets initially.

Employment, supply chains, and regional manufacturing stakes

For UK businesses, Vertical’s site decision matters primarily through supply chain participation and regional employment. The company’s growth would create demand for advanced materials, electronic components, battery cells, avionics systems, and specialist manufacturing services. Small and medium-sized manufacturers capable of meeting aerospace quality standards could secure long-term contracts as Vertical scales production.

Battery production represents a particularly significant opportunity. Vertical plans to manufacture battery packs in-house, which means UK suppliers of battery cells, thermal management systems, and battery management electronics could benefit. This aligns with broader government efforts to build domestic battery supply chains, primarily for automotive applications but increasingly relevant to aviation.

Regional economic impact will vary depending on where Vertical locates its main facilities. Areas selected for production would see direct job creation, increased demand for local services, and potential attraction of related aerospace businesses. However, regions that miss out would still benefit if they host supply chain companies. Consequently, the final site decision will be closely watched by regional development agencies across the UK.

Essential details on Vertical’s UK manufacturing expansion

• Vertical Aerospace is down-selecting UK sites for full-scale aircraft assembly and battery manufacturing facilities, with final decisions expected before the end of 2024.
• The UK government is providing up to £10 million in additional grant funding, bringing total direct government support to £48 million if finalised.
• The company projects 700 direct jobs by 2030, with Frontier Economics estimating up to 2,200 jobs and £3 billion in annual GVA by 2035.
• Initial production of approximately 25 aircraft per year will take place at Cotswold Airport in Gloucestershire, with battery production planned near the Avonmouth R&D base.
• Vertical is targeting commercial certification in 2028 and aims to scale production to 900 aircraft annually by 2035.
• The Ministry of Defence has expressed interest in defence applications of Vertical’s eVTOL technology, suggesting potential public sector demand beyond commercial operations.

What businesses should consider as electric aviation scales

Companies in advanced manufacturing, aerospace supply chains, and battery technology should monitor Vertical’s site selection closely. The final decision will signal where UK electric aviation capacity is clustering and which regions are attracting government support for next-generation aerospace. Suppliers capable of meeting aerospace quality standards may find opportunities to bid for contracts as Vertical ramps up production.

Battery manufacturers and suppliers of battery components should note the in-house production plans. Vertical’s battery facility will need cells, thermal management systems, and battery management electronics. Consequently, companies with relevant capabilities should position themselves for potential supply agreements. Additionally, businesses supporting aerospace certification processes, including testing and quality assurance services, may see increased demand as more eVTOL manufacturers move toward commercial production.

For businesses considering carbon reporting and net-zero commitments, electric aviation represents a future option for reducing emissions from business travel. However, commercial services remain several years away. Therefore, near-term travel emissions will still require offsetting or reduction through conventional means. Businesses should track certification progress and service launch timelines to understand when electric aircraft become a practical option for corporate travel policies.

Regional economic development considerations also matter for businesses planning facility investments. Vertical’s site decision may influence where other aerospace and battery businesses locate. Consequently, companies in related sectors should consider how their own site selection aligns with emerging clusters in electric aviation and advanced battery manufacturing. Furthermore, businesses in selected regions may benefit from improved local infrastructure, skills development programs, and supplier networks that emerge around major manufacturing projects.

Firms involved in sustainable procurement should note the government’s willingness to support domestic advanced manufacturing through targeted grants. This approach suggests continued public sector appetite for anchoring emerging technology production in the UK. Therefore, businesses developing innovative low-carbon technologies may find grant funding and strategic support available if they commit to UK-based production and job creation.

Official sources and further information

Vertical Aerospace publishes updates on manufacturing plans and site selection through its investor relations channels. The company’s official website provides information on the VX4 aircraft specifications, certification progress, and commercial partnerships.

The UK government’s approach to supporting aerospace and battery manufacturing is outlined by the Department for Energy Security and Net Zero and the Department for Business and Trade. These departments manage grant programs and strategic support for advanced manufacturing sectors.

The Civil Aviation Authority oversees aircraft certification in the UK, including emerging eVTOL technologies. The CAA publishes guidance on certification pathways for electric aircraft and maintains information on regulatory frameworks for new aviation technologies.

For broader context on UK electric aviation policy and industrial strategy, the ADS Group, the trade body representing UK aerospace, defence, and security industries, publishes research and policy positions on electric flight and sustainable aviation technologies.