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Rolls-Royce, may be better known for expensive cars, like the Phantom, is also the engine maker for airplanes like the Airbus SE and Boeing Co. For past few years, Rolls-Royce has been developing electric propulsion aviation system and expects that fully-electric small aircraft taxis will be commercialized with in three to five years. 

Can Rolls-Royce stand behind these claims?

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Three years ago, when Rolls-Royce set out to build the world’s fastest electric aircraft, it teamed up with YASA, and aerospace engineering startup Electroflight. This led to genesis of Spirit of Innovation:

In 2021, Spirit of Innovation, a single-seat, electric-powered propeller plane, smashed the zero-emission speed record, hitting a top speed of ~556 kph (345 mph) over a distance of 3 kilometers.

The firm is now working to deliver two electric aviation propulsion systems: one for an electric vertical take-off and landing (eVTOL) vehicle, and another for a small commuter plane for Nordic regional airline Widerøe.

"Our focus at the moment is on urban air mobility: the eVTOL market with four to six passengers where we see viable product around 2025 and 2026," Spirit of Innovation head Matheu Parr told Fortune. "There's a market just behind that we call regional air mobility that would be fixed wing aircraft with nine to 19 seats and within that range we believe you can look at all-electric and hybrid-electric aircraft in 2028 to 2030."

How is Rolls-Royce planning to compete and win in this business?

Airline industry is one of the most competitive market, when it comes to margins. According to one report, "40 airlines failed in 2020". Outside the pandemic, one of the main cost factor is fuel. To address this primary factor, a slew of companies, ranging from startups to incumbents, are developing alternative source of power. These options include sustainable aviation fuel, or SAF, hydrogen, fully electric, and hybrid-electric. 

Rolls-Royce’s electric propulsion system can be used by both eVTOLs and commuter aircraft. Additionally, Rolls-Royce plans to invest ~$105 million over the next decade to develop its electric flight business. In 2019 the firm also acquired Siemens eAircraft, which held the previous speed record.

The first commercial application of P-Volt, a battery electric system developed by Rolls-Royce, will have ~600 kilowatt hours of power, enabling flying 6-8 people ~80 nautical miles, Rob Watson, president of the company’s electrical division, shared in an interview.

“We are confident in the technology. Now we need to scale it so it can have a meaningful economic influence,” Watson added. “I think that’s where you see urban air mobility and regional air mobility, aircraft with 8-18 seats, becoming a real possibility in the next three to five years.” 

What's next for Rolls-Royce?

Rolls-Royce is working with suppliers for battery cells, as it approaches the crucial stage of certification, Watson said. While Rolls-Royce will design and assemble the packs, it won’t manufacture battery cells, he said.

“We need to make supply selection decisions in the next year, year and a half,” Watson said. “We’re making decisions about our strategic suppliers this year.”

“Batteries are not yet on par with jet fuel in terms of energy density, but they are sufficient for up to 100 nautical miles, a far enough range to enable air taxi services for suburban and metropolitan destinations,” Parr said. “To fly four to six passengers that distance, our math says, you need battery packs that are about 200-220 Wh/kg,” Parr estimated.