German battery manufacturer CustomCells has initiated insolvency proceedings for its central operating entities in Itzehoe and Tübingen, according to a filing made on April 30, 2025. The Kiel District Court has appointed Dr. Malte Köster, a partner at the leading German law firm WILLMERKÖSTER, as the preliminary insolvency administrator for these entities. The overarching holding company of the CustomCells Group remains unaffected by this development.
The insolvency is primarily attributed to the financial distress caused by the insolvency and payment default of CustomCells’ largest client, aerospace company Lilium. Unpaid receivables totaling tens of millions of euros could not be sustained, and efforts to attract new investors with adequate capital were unsuccessful amid a challenging macroeconomic climate and increased pressure from other struggling battery industry players. Attempts to prevent insolvency through assistance from regional, federal, and EU institutions did not yield the desired support.
Dr. Köster and his team have commenced their roles as preliminary insolvency administrators. Employees were briefed on the insolvency filing and the forthcoming steps during a company-wide meeting. Business operations will continue, and employee salaries are secured until June 2025. Concurrently, efforts are underway to restart the investor search process to stabilize and potentially restructure the company.
Dr. Dirk Abendroth, CEO of CustomCells, stated, “This decision was not made lightly. Despite our best efforts and strong business developments, external factors beyond our control necessitate this step. Our focus is on maintaining operations and establishing a viable path forward. We appreciate the trust and support of our employees, customers, investors, and partners during this challenging period.”
In his initial statement, Dr. Malte Köster remarked, “CustomCells is a leading battery manufacturer with a strong emphasis on research and cutting-edge battery cell technology. The current environment for startups in Germany, especially within the battery sector, is difficult. The issues with Lilium have significantly impacted CustomCells, and we are evaluating restructuring options under insolvency protection while initiating a new investor process alongside the management team.”
Established in 2012 as a spin-off from the Fraunhofer Society, CustomCells specializes in high-performance, customized battery cells and recently announced the development of a pilot facility for innovative cylindrical cells in Tübingen. This facility is part of a significant funding initiative aimed at bridging the gap between research and industrial-scale production. CustomCells continues to support customers throughout the entire battery value chain, from concept development to serial production, contributing to the global energy transition with its innovative and comprehensive battery solutions.
Source: CustomCells
