German battery pioneer CustomCells has filed for insolvency proceedings for the group’s key operating entities located in Itzehoe and Tübingen, following court filings in Kiel.
The holding company of the CustomCells Group is not affected by the insolvency filing at this time.
Founded in 2012 and spun out of the German Fraunhofer Society, CustomCells established sites in Itzehoe and Tübingen, where more than 200 dedicated professionals are currently employed.
The company supports customers throughout the entire value chain – from initial concept development to the delivery of cells for serial production. It develops and industrialises customised premium battery technology and contributes to the global energy transition.
In 2022 the CustomCells raised €60 million Series A.
According to a statement by the company, the financial difficulties at CustomCells stem primarily from the insolvency and payment default of its largest customer, eVTOL company Lilium.
It states:
“Outstanding receivables in the tens of millions of euros remained unpaid and could no longer be absorbed.
Despite promising business developments, no new investors with sufficient capital were secured in time to offset these losses, due in part to the current challenging macroeconomic environment.
The strained situation affecting other battery industry players added further pressure. Efforts to avoid insolvency through support from regional, federal, and EU institutions ultimately proved unsuccessful.”
Employees were informed of the insolvency filing and the next steps in the preliminary proceedings during an all-hands meeting.
However, business operations at CustomCells will continue for the time being, with wages secured through June 2025.
In parallel with stabilising ongoing operations, preparations are underway to restart the investor search process.
“This decision was not made lightly,” said Dr. Dirk Abendroth, CEO of CustomCells.
“Despite our best efforts, outstanding products, and strong business development, we are forced to take this step due to external factors beyond our control.
Our focus is now on maintaining operations as best as possible and creating a viable path forward for the company. We are grateful to our employees, customers, investors, and partners for their trust and support during this challenging time.”
In an initial statement, preliminary insolvency administrator Dr. Malte Köster commented:
“The environment for startups in Germany is currently difficult, particularly in the battery sector.
Ultimately, the developments at Lilium have significantly impacted CustomCells.
We are now working to gain a full understanding of the situation and, over the coming days and weeks, will evaluate what restructuring options are available under insolvency protection.
At the same time, we will launch a new investor process together with the management team.”
European battery startups are grappling with a series of significant challenges that threaten their growth and competitiveness in the global market.
In March heavyweight Northvolt filed for bankruptcy — its industrial division was later acquired by Scania Trucks).
But we’ve also seen earlier-stage batterytech companies PULSETRAIN, Nyobolt, and NOWOS raise funds this year.
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