Customcells, a developer of battery cells, has announced the completion of a €60 million (~$63 million) Series A funding round, proceeds of which would be used to promote electric flights and expand the company’s global footprint.

The European climate tech VC World Fund led the funding round with participation from Abacon Capital, Vsquared Ventures, and Porsche.

With an aim to become a leader in the global premium battery market, the company will use the funds to expand activities in the electrification of air traffic and create a competitive advantage through a First2Market approach, which includes significantly more powerful battery cells and certifications from the European Aviation Safety Agency (EASA) and the U.S. Federal Aviation Administration (FAA).

The funding will also help intensify research and development work, as the company registered 50 patents in 2022 and plans to expand the number in the coming years and promote internationalization.

With the transaction, Vsquared Ventures has increased its stake in Customcells. The company’s founders, Leopold König and Torge Thönnessen, will remain the company’s largest shareholders.

“Our goal is to create and shape a new premium segment in the international market for battery cells,” says Dirk Abendroth, CEO of the Customcells Group. “This includes the next generation of battery cells that are developed and produced tailor-made to the needs of our customers. Customcells should become a global player – an independent, large premium brand in the global battery cell business.”

Customcells – located in Itzehoe and Tübingen – is a spin-off of the Fraunhofer-Gesellschaft and has been active in developing and series production of lithium-ion battery cells for more than ten years.

According to Mercom’s 9M And Q3 2022 Funding and M&A Report for Storage, Grid & Efficiency, the VC funding in Energy Storage in 9M 2022 fell by over 44%, with $4 billion in 73 deals compared to $7.2 billion in 60 deals in 9M 2021.