CustomCells Files for Insolvency Proceedings for Key Operating Entities

German battery pioneer CustomCells has filed for insolvency for its main operating entities in Itzehoe and Tübingen. The competent court in Kiel has appointed attorney Dr. Malte Köster, partner at WILLMERKÖSTER Law Firm, one of Germany’s leading insolvency law firms, as preliminary insolvency administrator for the operating companies. The holding company of the CustomCells Group is currently not affected by the insolvency filing.

CustomCells‘ financial difficulties stem primarily from the insolvency and payment defaults of its largest customer, the aerospace company Lilium. Outstanding receivables in the tens of millions of euros remain unpaid and can no longer be absorbed. Despite promising business development prospects, new investors with sufficient capital to cover these losses were not available in time due to the current difficult macroeconomic environment. The difficulties of other battery industry players further exacerbated the pressure on CustomCells. Efforts to avoid insolvency through support from regional, federal and EU institutions were ultimately unsuccessful.

Dr. Köster and his team have taken on the role of preliminary insolvency administrator. All employees were informed of the insolvency application and the next steps in the preliminary proceedings at a general meeting. CustomCells’ business operations will continue for the time being. Employee salaries will be guaranteed until June 2025. While stabilizing existing operations, the company is preparing to restart the investor search process.

Dr. Dirk Abendroth, CEO of CustomCells, said:

“This decision was not made lightly”

“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:

“CustomCells is a high-end battery manufacturer and one of the pioneers of cutting-edge battery technology with a strong focus on research and development.

“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.”

Could this development signal a broader challenge for European battery manufacturers?

About CustomCells

CustomCells is one of the few companies in Europe that specializes in high-performance custom battery cells and one of the few battery manufacturers headquartered in Germany. The company recently announced that it will build a state-of-the-art pilot plant for innovative cylindrical cells in Tübingen as part of a large funding program aimed at bridging the gap between research and industrial production.

Founded in 2012 as a subsidiary of the Fraunhofer-Gesellschaft, CustomCells has plants in Itzehoe and Tübingen and currently employs more than 200 professionals. The company supports its customers along the entire value chain, from initial concept development to the delivery of cells for series production. CustomCells is committed to the development and industrialization of customized high-end battery technologies and, with its innovative technologies and comprehensive battery expertise, is contributing to the global energy transition for a better future.

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