EHang, a leading autonomous aerial vehicle technology company, has signed a Memorandum of Understanding (MOU) on urban air mobility (UAM) with the Bao'an District Government of Shenzhen municipality. The partnership involves the commercial operations of EHang's EH216-S AAVs once the EH216-S-type certification is completed.

As such, the two parties will jointly create UAM use cases, routes, and systems to develop Shenzhen as a national low-altitude economy development demonstration city. Furthermore, EHang intends to establish its first UAM operation demonstration center at the OH Bay in Shenzhen to launch aerial tourism and sightseeing experience services using its EH216-S AAVs.

Furthermore, the Bao’an district government will be providing support for EH216-S AAV procurement, infrastructure construction, financial leasing, and low-altitude operations. In line with this, EHang will also establish an EH216-S AAV assembly and delivery center, a research and development testing center, and a maintenance support center in the area.

Analyst QuickTake: In the same month, EHang raised USD 23 million in private placement led by South Korean investor Lee Soo Man. The company intends to use the funding for working capital and general corporate purposes and to support technology advancement, business development, and post-certification commercial operations. Furthermore, the company also intends to collaborate with Mr. Lee Soo Man on developing the UAM business in Asia-Pacific regions.