Urban Air Mobility Developer Inks US$100 Million Deal With Hefei Municipal Government

EHang Holdings Limited (EHang) a leading urban air mobility (UAM) technology platform company, has entered into a strategic cooperation agreement with the Hefei Municipal Government for the joint development of a low-altitude economy ecosystem in Hefei City, in China’s Anhui Province.

EHang will participate in Hefei’s Full-Space Unmanned System Integrated Application Demonstration Project and launch regular operations with UAVs in Luogang Central Park in Hefei.

This park is set to become the world’s premier UAM super aero hub. The Hefei Municipal Government intends to provide EHang support in the form of coordinating or facilitating purchase orders, for no less than 100 units of the EH216 series UAVs, and financing support, amounting to a total of US$100 million.

Emergency, Rescue and Firefighting

In addition, the Hefei Municipal Government will actively support EHang in diversifying UAV applications and cooperations in cultural tourism, emergency and rescue, logistics, firefighting, and other “low-altitude +” scenarios within the local Hefei market.

To accelerate the establishment of the Full-Space Unmanned System, the Hefei Municipal Government will also provide EHang with comprehensive support in utilising land space, infrastructure development, and specialised operational subsidies. EHang intends to set up its regional headquarters for Eastern China in Hefei to promote UAV production, sales, and operations and accelerate UAM adoption in the area.

As a pilot area for the national low-altitude airspace management reform, Anhui Province is actively building a low-altitude industrial cluster. Hefei City stands as a central player with a pivotal hub node in Anhui Province’s pilot program and is committed to establishing itself as a regional service center for general aviation, especially in fostering favorable conditions for enterprises developing low-altitude economy in China.

Recently, EHang’s flagship product, the EH216-S, has achieved a significant milestone by obtaining the world’s first type certificate for an unmanned electric vertical takeoff and landing (eVTOL) aircraft, issued by the Civil Aviation Administration of China.

By leveraging the strategic advantages offered by Anhui Province and Hefei City, including location, talent pool, and favorable policies, EHang plans to methodically commence commercial operations with the EH216-S.

Huazhi Hu, Founder, Chairman, and CEO of EHang said: “We are delighted to partner with another influential city to propel the widespread growth of the emerging UAM sector. We have full confidence that this partnership will expedite the implementation of low-altitude industries with significant contributions to the high-quality development of low-altitude economy in China.”