US company Lyten is acquiring several of Northvolt's assets in Germany and Sweden. These include various factories and intellectual property.
Northvolt is a Swedish company founded in 2016 by Peter Carlsson, who previously worked as a manager at EV manufacturer Tesla. Northvolt focuses specifically on the development and production of lithium-ion batteries. The company aimed to become the major European battery manufacturer.
Declining demand
However, it did not come to that; the company saw a sharp drop in demand from customers for its batteries. BMW, for instance, cancelled a €2bn order from Northvolt, while truck manufacturer Scania postponed a delivery of batteries. The drop in demand seems mainly due to disappointing demand for EVs combined with fierce competition for European EV makers from China.
For some time, Northvolt had been taking steps to strengthen its financial position. For instance, back in 2024, the company applied for a moratorium in the United States; it filed a so-called Chapter 11 bankruptcy petition in the US state of Texas. This procedure provides protection from creditors, with the aim of restoring its financial position. Northvolt also cut some 1,600 jobs to reduce its costs.
However, Northvolt was unable to keep its head above water financially and was forced to file for bankruptcy in March. The receiver hoped to continue Northvolt's production while looking for a buyer. However, the number of customers declined rapidly, causing production at Northvolt's main plant in Sweden to cease in June.
Who is Lyten?
So now a buyer has been found for Northvolt's operations: Lyten. Founded in 2015, this US startup focuses on manufacturing batteries, sensors and composites, among other things. The company has headquarters in San Jose, California, and a European headquarters in Luxembourg.
Lyten previously raised $625 million in funding from investors, while the Export-Import Bank (EXIM Bank) put $650 million into the company. EXIM Bank is a US government agency that provides financial services to support the export of US goods and services.
Various Northvolt assets acquired
Lyten already acquired the Californian battery production facility of Cuberg, which is part of Northvolt, in November 2024. It also acquired Battery Energy Storage System (BESS) Northvolt Dwa production facility in Gdansk, Poland, in early July. The BESS product portfolio and related intellectual property came into the hands of the US startup at the end of July.
Now Lyten will also acquire Northvolt Ett and Ett Expansion in Skellefteå, Sweden, Northvolt Labs in Västerås, also in Sweden, and Northvolt Drei in Heide, Germany. Lyten plans to restart operations in Northvolt Ett and Northvolt Labs once the acquisition is complete. The company is also considering an acquisition of Northvolt Six in Quebec, Canada.
In total, Lyten is taking over 16 GWh of operational battery production capacity, as well as 15 GWh still under construction. In addition, plans to scale up production to over 100 GWh will come into the company's hands.
Also intellectual property in US hands
In addition, Lyten is taking over Northvolt's intellectual property. It reports that all the Northvolt assets it is taking over are valued at around $5 billion. How much Lyten is paying for the acquisition is not known.
Several members of Northvolt's management team will join Lyten. Lyten also reports that it intends to rehire a "significant proportion" of previously laid-off staff from the various locations, assessing staffing needs on a site-by-site basis. "Lyten sees significant value in retaining local expertise and is committed to creating long-term employment opportunities as we restart and scale up operations," the company said.
'Profit for Sweden'
Ebba Busch, Deputy Prime Minister of Sweden, is positive about the acquisition. "Lyten's acquisition of the Northvolt assets is a win for Sweden, for Northvolt's former employees and for Sweden's position as key to Europe's energy independence. We have worked closely with the receiver and Lyten to fully support this deal and we look forward to working with Lyten to realise the immense potential of these assets."
Lyten reports seeing growing demand for locally produced batteries, both in Europe and North America. "The demand for batteries made in Europe and North America is only growing," says Lars Herlitz, chairman and co-founder of Lyten. "The combination of Northvolt's world-class manufacturing operations and clean energy at low cost, Lyten's world-leading lithium-sulphur battery technology, and Lyten's battery materials supply chain in the US creates the right formula to meet battery manufacturing ambitions in Europe and North America."
