After Lilium bankruptcy: Battery startup Customcells files for insolvency – but finds new investors

An investor consortium is taking over large parts of Customcells and wants a change of strategy: instead of in flying taxis, the batteries are to be used in the defense industry.

At the end of April, the battery startup Customcells filed for insolvency for its operating companies in Itzehoe and Tübingen. Now, however, the company has found an investor. It's the end of the end—at least partially. The "Handelsblatt" was the first to report this, citing sources from financial and negotiating circles. According to the report, a takeover agreement was apparently signed on Wednesday evening. Insolvency administrator Malte Köster has since confirmed this in an official statement: "The investor process for the insolvent Customcells Group has been completed," it states.

An investor consortium led by existing investor Abacon, the family office of the Hamburg-based billionaire Büll family , which is also one of the largest shareholders in Mister Spex, is taking over significant parts of the company. Officially, the purchase price has been kept confidential. However, the "Handelsblatt" newspaper, citing its sources, reports that the purchase price was in the single-digit million range, with an additional double-digit million amount planned for follow-up investment. Around half of the current 160 employees will be able to keep their jobs. The Tübingen location will be closed.

Customcells' near-bankruptcy was a direct result of Lilium's insolvency last winter: The main reason for the financial difficulties were unpaid invoices from the flying taxi developer, which, as its largest customer, was unable to settle outstanding claims in the tens of millions of euros, according to an announcement about the opening of the insolvency proceedings. Lilium was Customcells' largest customer, according to today's announcement. "Furthermore, the intense competitive pressure in the battery industry made things even more difficult," the company continued.

Customcells, a spin-off of the Fraunhofer Society, focused on the development and production of lithium-ion batteries for various industrial purposes – especially for electric aircraft.

Now, as the "Handelsblatt" reports, a strategic realignment is underway. Instead of focusing on the loss-making aerospace segment, Customcells plans to focus more on defense applications in the future. The significant growth potential here is obvious. And Customcells already has an advantage: Unlike many other European battery manufacturers, the company already has NATO certification. Customcells batteries are already being used in the navy.

Customcells' previous investors included Vsquared Ventures, 468 Capital, and Porsche Ventures, which invested a double-digit million sum in 2021. In its largest financing round of 2022, the company raised €60 million. Lead investors in this Series A round were climate tech venture capital firm World Fund and the Hamburg-based family office Abacon Capital.