US startup Lyten has confirmed it has reached an agreement to purchase the majority of assets from Swedish battery manufacturer Northvolt, which has been in bankruptcy since March. The deal covers Northvolt’s strategic facilities in Sweden and Germany, as well as its intellectual property rights. Lyten plans to restart production at the Skelleftea site and aims to reposition Europe as a major player in energy storage, against the backdrop of strong global competition.
Industrial redeployment and preservation of European capabilities
Northvolt represented one of the main hopes for European sovereignty in the manufacturing of batteries for electric vehicles and industrial applications. Before its bankruptcy, the company held an order book exceeding $50bn with major automakers, including BMW, Volkswagen, and Audi. Northvolt had raised more than $10bn in equity, debt, and public funding, employing over 6,000 people at its peak. The bankruptcy was attributed to difficulties in producing cells that met quality requirements and in scaling up production as expected by customers and shareholders.
Founded in California in 2015, Lyten specialises in lithium-sulphur technology, seen as an alternative to traditional lithium-ion batteries. Lyten Chief Executive Officer Dan Cook stated that the priority is “to pick up where the Northvolt team left off.” Several members of Northvolt’s former management will join the new entity, with the exception of founder Peter Carlsson. No details have been disclosed about the exact amount of the transaction, except that it was concluded at a “significantly reduced” price.
Energy storage market and restart prospects
The agreement also includes Northvolt’s intellectual property and its operations in Germany. Lyten intends to restart production at Skelleftea quickly and to resume deliveries of lithium-ion cells as early as 2026. In July, the company had already acquired Northvolt’s energy storage division in Poland, considered the largest in Europe. The Swedish government highlighted that this operation prevents a complete shutdown of the sector and positions the country as a strategic hub for energy storage.
Lyten benefits from investments by several major players, including Stellantis, FedEx, and the US government. More than $200mn in additional funds have recently been raised to support this expansion strategy. The company plans to focus initially on supplying a single major customer, while targeting the automotive, defence, and industrial storage markets. Steps are also underway to acquire Northvolt’s Canadian subsidiary.
The finalisation of this agreement remains subject to regulatory steps, while the European energy storage sector is closely watching the development of this case.
