German Battery Developer CustomCells Files for Insolvency Following Lilium Payment Default
German battery technology pioneer CustomCells has filed for insolvency proceedings for its key operating entities located in Itzehoe and Tübingen.
The insolvency filing does not affect the holding company of the CustomCells Group at this time.
The competent court in Kiel has appointed Dr. Malte Köster, a partner at the insolvency law firm WILLMERKÖSTER, as the preliminary insolvency administrator for the operating companies. WILLMERKÖSTER is recognized as one of the leading insolvency law firms in Germany.
The financial challenges facing CustomCells are primarily linked to the insolvency and payment default of its largest customer, a German electric vertical take-off and landing (eVTOL) firm, Lilium.
According to the company, tens of millions of euros in outstanding receivables remained unpaid and could no longer be absorbed.
Although CustomCells had reported promising business developments, efforts to secure new investors with adequate capital failed to materialize in time—partly due to the current difficult macroeconomic climate.
Furthermore, broader pressures within the battery sector added to the strain, and attempts to secure support from regional, federal, and EU institutions were ultimately unsuccessful.
Dr. Köster and his team have already started their work as preliminary insolvency administrators.
Operations Continue as Insolvency Process Begins
Employees were informed of the insolvency filing and the next steps during an all-hands meeting. Business operations will continue for now, and wages and salaries are secured through June 2025. In parallel, preparations are underway to relaunch the investor search.
“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, “CustomCells is a premium battery manufacturer and one of the pioneers in cutting-edge battery cell technology, with a strong focus on research.”
He added, “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.”