German Battery Manufacturer CustomCells Files for Insolvency After Lilium’s Financial Troubles

CustomCells, a German battery cell developer, has filed for insolvency following financial difficulties caused by its largest customer, air taxi developer Lilium. The insolvency application affects the company’s main operating subsidiaries in Itzehoe and Tübingen, though the holding company of the CustomCells Group remains unaffected at this stage.

The insolvency was triggered by Lilium’s inability to pay significant outstanding invoices. CustomCells had relied heavily on Lilium for business, and the air taxi company’s financial troubles left a substantial gap in CustomCells’ revenue. Despite the filing, CustomCells’ operations will continue for the time being, with wages and salaries for its employees secured until June 2025.

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Dirk Abendroth, CEO of CustomCells, stated, “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.” He continued, “Our focus is now on maintaining operations as best as possible and creating a viable path forward for the company.”

Founded in 2012 as a spin-off of the Fraunhofer-Gesellschaft, CustomCells specializes in developing and manufacturing high-performance batteries for various sectors, including premium automotive engineering, motorsport, e-aviation, and defense technology. With over 200 employees, the company has established itself as a key player in the battery development field, catering to market segments not served by larger Asian manufacturers.

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The company had recently moved into a new headquarters in Itzehoe, which includes a state-of-the-art research center. At the time, Abendroth had described the new site as “our laboratory for the future,” with high hopes for growth. However, following the insolvency, both employees and investors now face uncertainty as CustomCells prepares for an investor search and stabilizes its ongoing operations.

Parallel to the insolvency proceedings, the company is focusing on securing new investors to ensure its future viability. CustomCells has stated that its operations will continue to function while it seeks financial solutions and stabilizes its situation.