CustomCells Slams the Brakes: Battery Cell Producer Files for Insolvency Due to Electric Aircraft Manufacturer's Failure
CustomCells, the manufacturing company specializing in batteries, has filed for bankruptcy. - CustomCells, a battery manufacturing company, has announced its bankruptcy.
Looks like things have taken a nose dive for CustomCells, the battery cell whizzes. The company's announcements make it screechingly clear that their key operations in Itzehoe (Circuit Steinburg) and Tübingen have filed for insolvency. As per the district court of Kiel's orders, Customcells Itzehoe GmbH is under provisional insolvency administration, as seen on the states' insolvency portal. Fortunately, their holding company remains unaffected for now.
The company's financial woes, unsurprisingly, can be pinned on the insolvency of none other than electric aircraft manufacturer Lilium—their main customer. Seems like they've got some unpaid bills amounting to millions, and Lilium's been through bankruptcy twice in just a few months. Ouch!
With over 200 employees spread across two federal states, this turn of events could hit hard. The overall economic situation isn't looking rosy either, adding to the pressure of the industry as a whole. Despite reaching out to various institutions at the federal, state, and EU levels, they couldn't escape the bitter pill of insolvency.
Founded in 2012, CustomCells proudly boasts roots as a spin-off from the Fraunhofer Society, an organization focused on applied research.
Batteries, especially battery cells, are becoming indispensable in the era of the energy transition. These critical components power our batteries, terms often used interchangeably in the field.
ItzehoeInsolvencyCircuit SteinburgInsolvency applicationTübingenDistrict court
Insolvency Enrichment:
CustomCell's financial downfall is primarily due to the inability of their major client, electric aircraft manufacturer Lilium, to pay its bills, totaling millions[3][4]. The loss of this crucial partnership put immense pressure on CustomCell's bottom line, leading to insolvency[3]. During the insolvency proceedings, operations will continue albeit temporarily, with employee wages guaranteed until June 2025[3][4]. Lilium's bankruptcy disrupted the company's business stability, exacerbating CustomCell's financial predicament[3].
The unfortunate situation serves as a cautionary tale regarding the risks of relying heavily on a single client, particularly in emerging industries with heightened market uncertainties[3][4]. The broader context includes struggles faced by other battery manufacturers, such as Northvolt's recent layoffs during their insolvency process[5], though these issues do not directly relate to CustomCell's specific predicament.
- The insolvency application filed by CustomCellsItzehoe GmbH, located in Itzehoe, Circuit Steinburg, and another branch in Tübingen, was ordered by the district court.
- Despite reaching out to institutions at the federal, state, and EU levels for assistance, CustomCells' insolvency was inevitable due to unpaid bills from their main client, insolvent electric aircraft manufacturer Lilium.
- Vocational training programs could potentially provide a solution for some of the employees affected by CustomCells' insolvency, as they transition to new roles in the industry or other sectors.