German battery maker Customcells files for insolvency

Customcells, a company specializing in the development and series production of lithium-ion battery cells tailored to customer requirements, has filed for insolvency proceedings “for its key operating companies.”

The development was announced on Wednesday by attorney Malte Köster, a partner at the Bremen-based Willmer Köster law firm. Köster was appointed insolvency administrator by the relevant court in Kiel.

The reason given for the move was “the insolvency and default of the aviation company Lilium, Customcells’ largest customer.” Lilium, a developer of flying taxis, first filed for insolvency in October 2024 and then, after a failed rescue attempt by investors, filed again in February.

For Customcells, that reportedly resulted in unmet payments amounting to tens of millions of euros. In the “currently difficult economic situation,” according to the insolvency administrator’s statement, no new investors could be found in the short term to offset those burdens. “The tense situation among competitors in the battery industry” further aggravated the situation, continued the statement, adding, “Even efforts to avert insolvency through support from the state, federal government, and EU ultimately proved unsuccessful.”

In March, Itzehoe, Schleswig-Holstein-based Customcells received €8 million ($9 million) from the state of Baden-Württemberg to establish a pilot production facility for innovative round cells in Tübingen. Scientific partners in the project include the Center for Solar Energy and Hydrogen Research, Baden-Württemberg; the Fraunhofer Institute for Manufacturing Engineering and Automation IPA; and the Karlsruhe Institute of Technology.

Customcells was founded in 2012 as a spin-off of the Fraunhofer Society. With around 200 employees, the company is one of the few German battery manufacturers and, according to company information, has cooperated with more than 500 customers. The spectrum of services offered ranged from conceptual design and joint development to series production of battery cells for special requirements, primarily in the automotive, aviation, and shipping sectors. In 2022, Customcells agreed to sell a 40% stake to production equipment manufacturer Manz – which has been insolvent since February – and also formed a joint venture with Porsche.

“Despite our best efforts, outstanding products, and strong business performance, we must take this step due to external circumstances beyond our control,” said Customcells CEO Dirk Abendroth, regarding the insolvency filing. He said the company focus was now on “maintaining operations as best as possible and creating future prospects for our company.” The insolvency administrator said wages and salaries are secured through June and the administrator is “gaining a comprehensive picture of the situation.” In the coming days and weeks, prospects for restructuring under the protection of insolvency law will be examined. “At the same time, we will initiate a new investor process together with management,” said Malte Köster.

From pv magazine Deutschland.