Itzehoe, Germany — CustomCells Group, a key player in specialized battery cell technology, has successfully navigated insolvency proceedings that commenced in July 2025, securing its core business and a significant portion of its workforce through an acquisition by a consortium of family offices.
The agreement, expected to finalize in the coming weeks, ensures the continuation of research, development, and production activities critical to customers in demanding sectors such as defense, aviation, motorsports, and mining. This development marks a pivotal moment for the company, which faced significant financial challenges leading to the insolvency filing.
Background to Financial Distress
Sources close to the insolvency proceedings, including insights provided by the insolvency administrator, attributed CustomCells’ financial difficulties primarily to two factors: the default of former major customer Lilium and intense competitive pressure within the rapidly evolving battery cell industry. Lilium, a developer of electric vertical takeoff and landing (eVTOL) aircraft, had been a significant client, and their default reportedly created a substantial financial void for CustomCells.
Additionally, the global market for battery technology has become increasingly competitive, with established giants and nimble startups vying for market share, particularly in high-performance and specialized applications. This environment amplified the financial strain on CustomCells following the loss of key revenue.
The Acquisition Deal
The buyer is a consortium composed of several family offices. Notably, the consortium includes existing investors such as ABACON and SALVIA. This indicates a degree of continued confidence from previous stakeholders in the underlying technology and potential of CustomCells’ core business, despite the recent turbulence. The involvement of family offices, often characterized by a long-term investment horizon, suggests a commitment to rebuilding and stabilizing the company.
The precise terms of the acquisition have not been publicly disclosed, but the focus is clearly on preserving the valuable assets, intellectual property, and skilled workforce associated with CustomCells’ core operations. The expected completion of the agreement in the coming weeks suggests the process is nearing its final stages, moving towards a formal transfer of ownership and operational control.
Operational Outlook and Job Security
A crucial outcome of the acquisition is the preservation of operations at the company’s main site in Itzehoe. This facility, part of a technology cluster, is central to CustomCells’ specialized manufacturing and advanced R&D capabilities.
The agreement provides significant relief for the workforce in Itzehoe, with approximately 80 percent of local jobs expected to be retained. This level of job security is a positive development following the uncertainty of insolvency proceedings and underscores the value placed by the acquiring consortium on the experienced personnel and technical expertise located there.
However, the acquisition does not encompass all aspects of the former CustomCells Group. The plant located in Tübingen will unfortunately remain closed. This highlights the selective nature of the acquisition, focusing specifically on the most viable and strategic parts of the business deemed essential for future success and profitability.
Future Focus: Specialised Markets
Under the new ownership, operations at the Itzehoe technology cluster will continue to concentrate on CustomCells’ traditional strengths: advanced research and development and specialized production for existing customers. The company’s focus remains on serving sectors where high-performance, custom-designed battery cells are critical.
These sectors include defense, where reliable and robust power sources are paramount; aviation, particularly in specialized or electric aircraft applications; motorsports, demanding high power density and rapid charging capabilities; and mining, requiring durable batteries for heavy-duty equipment in challenging environments.
This continued specialization positions the revitalized CustomCells to leverage its unique technological know-how and established relationships within these niche, high-value markets, providing a clear strategic direction for the company’s future.
Conclusion
The acquisition of CustomCells’ core business by a consortium including existing investors like ABACON and SALVIA marks a significant step towards stability and future growth for the German battery technology company. Emerging from insolvency proceedings initiated in July 2025, the company has successfully secured the future of its main Itzehoe site, retaining a substantial majority of its workforce there.
While the Tübingen plant will not reopen, the preservation of R&D and specialized production for key sectors like defense, aviation, motorsports, and mining underscores the value seen in CustomCells’ expertise despite the challenges posed by competitive pressures and the default of a major customer like Lilium. The expected completion of the deal in the coming weeks signals a new chapter for CustomCells, focused on rebuilding and capitalizing on its strengths in specialized battery solutions.
