GE Aerospace (GE) is making a $300 million bet on Vermont-based BETA Technologies to push hybrid-electric aviation closer to reality.
The deal, pending regulatory approval, would give GE a board seat and accelerate the development of a hybrid turbogenerator designed for Advanced Air Mobility (AAM) aircraft.
The system is pitched as a breakthrough engine for vertical takeoff and landing (VTOL) vehicles, long-range electric aircraft, and even military and cargo fleets.
GE says it will leverage its existing CT7 and T700 engines to deliver “significant enhancements” in range, payload, and speed compared with current-generation designs.
“Partnering with BETA will expand and accelerate hybrid-electric technology development,” said GE chairman and CEO Lawrence Culp, Jr. “We’re meeting customer demand for differentiated capabilities that deliver more range, payload, and optimized performance.”
BETA’s founder and CEO Kyle Clark called the deal a game-changer.
“We believe the industry is on the precipice of real transformation, and we’re humbled that GE Aerospace has the confidence to partner with us,” he said.
Hybrid vs. all-electric
While eVTOL startups like Archer Aviation (ACHR) and Joby Aviation (JOBY) are racing toward commercial launch, experts say battery-powered models are better suited to short-haul, taxi-style trips.
By contrast, Hybrid systems are increasingly viewed as the viable option for military and large-scale commercial aviation.
“There is no real anticipation we will see all-electric aviation anytime soon beyond a couple dozen passengers and a couple hundred miles,” said University of Illinois aerospace engineering professor Phil Ansell, speaking to DealBook.
Joby itself recently pivoted toward hybrids, partnering with L3 Harris Technologies (LHX) on a gas turbine hybrid VTOL for defense missions. Flight testing begins this fall, with demonstrations planned for 2026.
Even as President Trump’s administration scales back renewable energy subsidies, the airline industry is still chasing greener solutions, driven not only by environmental mandates but also fuel savings.
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