Vertical Aerospace (NYSE: EVTL) announced it has started integration testing for its next-generation hybrid-electric propulsion system and produced the first all-electric Valo battery from its upgraded assembly line.

The hybrid-electric propulsion system began testing on the company's Hybrid Propulsion Evaluation Rig (HYPER) at its Flight Test Centre at Cotswold Airport. The system underwent more than two years of development at the Vertical Energy Centre before entering the testing phase.

The HYPER facility enables system integration and validation of the hybrid powertrain, including the turbine, generator and associated electrical systems. The company is working with partners to integrate a sustainable aviation fuel-compatible gas turbine with an electric generator while developing system integration, control architecture and software.

Vertical plans to integrate the turbogenerator into a prototype hybrid-electric Valo aircraft for flight testing and demonstrations. The company targets certification of its hybrid-electric variant with the UK Civil Aviation Authority and the European Union Aviation Safety Agency.

The hybrid-electric variant is designed to achieve up to 1,000 miles of range, a 10-fold increase from the all-electric aircraft, and carry up to 1,100 kilograms of payload. The system is designed for crewed and uncrewed operations.

Separately, Vertical produced its first battery on an upgraded assembly line at the Vertical Energy Centre. The 15,000 square foot facility was enhanced with automated, aerospace-grade manufacturing processes designed to support certification and future production.

The battery prototypes will undergo environmental and operational testing. Battery packs from the assembly line will support Vertical's certification aircraft as it progresses through certification stages with the UK CAA and EASA.

"Hybrid capability complements our all-electric Valo platform and unlocks a broader range of civil and defence applications," said Stuart Simpson, CEO of Vertical Aerospace.