German battery firm’s collapse highlights industry woes
CustomCells, a German battery manufacturer, has filed for bankruptcy due to payment issues faced by its largest client. The future of its 200 employees remains uncertain.
Founded in 2012 as a spin-off from the German research institute Fraunhofer-Gesellschaft, the company operates two locations in Germany: its headquarters in Itzehoe (Schleswig-Holstein) and a production plant in Tübingen (Baden-Württemberg). It specialises in producing high-quality lithium-ion cells.
Battery manufacturer collapses despite recent funding
The portal swr.de reports that the battery manufacturer filed for bankruptcy unexpectedly. Notably, the federal state of Baden-Württemberg recently announced a grant of 8 million euros for the Tübingen plant to finance a pilot installation for so-called round cells.
The company's financial woes stem from the insolvency of its main client in the aviation industry, resulting in millions of euros in overdue receivables. Despite intensive efforts to attract new investors and secure state support, insolvency could not be avoided.
We are now focusing on maintaining operations as best we can - emphasised Dirk Abendroth, CEO of CustomCells, as quoted by srw.de.
Salaries secured only until June. What lies ahead for the battery manufacturer?
The bankruptcy filing raises questions about the future of approximately 200 employees. Currently, the company continues to operate, with employees' salaries secured until the end of June 2025.
To save the company, a temporary insolvency administrator has been appointed, and ongoing efforts are being made to find an investor.
Volkswagen supplier on the brink. Over 600 employees face uncertainty
CustomCells is just one of several German companies facing serious challenges. In April 2025, the automotive parts supplier Bohai Trimet also declared bankruptcy, with Volkswagen among its clients.
A bankruptcy proceeding has been filed for all four of the company's subsidiaries, affecting approximately 680 employees. Their wages are secured for the next three months. The insolvency manager is actively seeking investors to save the plants in Harzgerode and Sömmerda.
