"Swedish battery company Northvolt, facing bankruptcy, reaches a deal with Lyten for purchase"
Lyten, a US-based company specialising in clean energy storage systems, has announced the acquisition of Northvolt's key assets, including Northvolt Ett, Northvolt Labs, and Northvolt Drei. This significant financial transaction, valued at approximately $5 billion, positions Lyten as a major player in Europe's battery manufacturing sector.
The deal, which is expected to close in the final three months of this year, includes all remaining Northvolt intellectual property and infrastructure scalable beyond 100 GWh. With this acquisition, Lyten will have over 30 GWh of capacity (16 GWh existing plus 15 GWh under construction).
Dan Cook, CEO and Co-Founder of Lyten, stated that the acquisition will accelerate Lyten's mission to be a leading supplier of clean energy storage systems in North America and Europe. "This acquisition is strategically crucial for maintaining Europe’s battery manufacturing base and advancing next-generation battery technologies to support European energy independence and decarbonization efforts," he said.
The acquisition preserves critical battery manufacturing capacity in Europe, ensuring continuity in production which is vital for the continent’s electric vehicle (EV) industry and broader green energy transition. It also maintains technical expertise and employment for thousands of skilled workers in Sweden and Germany by rehiring much of Northvolt’s laid-off workforce.
Moreover, the deal secures supply chain stability for European automakers and energy sectors, supporting Europe’s ambitions to reduce reliance on battery imports and enhance regional energy independence. The acquisition introduces and accelerates the commercialization of lithium-sulfur battery technology, a promising chemistry that potentially offers higher energy density and reduced critical mineral dependence compared to conventional lithium-ion batteries.
Sweden's business minister Ebba Busch stated that the acquisition is a win for Sweden and positions Sweden as key to Europe’s energy independence. The mayor of Skellefteå, Lorents Burman, expressed relief about the agreement, considering it important for the people of Skellefteå and those who will regain their jobs.
Lars Herlitz, Co-Founder and Chairman of Lyten, stated that the combination of Northvolt's manufacturing assets and Lyten's lithium-sulfur battery technology is the right formula to fulfill Europe and North America's battery manufacturing ambitions. Lyten currently manufactures lithium-sulfur batteries in Silicon Valley and is preparing to launch its lithium-sulfur batteries onto the International Space Station in the coming months.
Key members of the current Northvolt executive team are joining Lyten, reinforcing European battery innovation and industrial infrastructure. The deal supports a more diversified and resilient European battery ecosystem, bridging lithium-ion cell manufacturing with advanced lithium-sulfur technologies. This diversification aligns with Europe’s long-term goals for clean energy autonomy and supply chain security amid geopolitical and economic uncertainties.
The agreement comes after a long journey since September last year, and it is a significant step towards Lyten's goal of becoming a leading supplier of clean energy storage systems in North America and Europe. The funds for the purchase were raised from private investors. However, the financial terms of the deal were not disclosed.
[1] The Verge [2] Reuters [3] TechCrunch [4] Bloomberg [5] Electrive
- The acquisition by Lyten, a US-based clean energy storage system company, of Northvolt's assets, including Northvolt Ett, Northvolt Labs, and Northvolt Drei, signifies a foray into technology, as it positions Lyten as a major player in Europe's battery manufacturing sector, a field normally associated with general-news headlines.
- The deal, involving the transfer of Northvolt's intellectual property and infrastructure, promises to introduce and accelerate the commercialization of lithium-sulfur battery technology, a next-generation, high-energy-density alternative to conventional lithium-ion batteries, thereby significantly impacting both the technology and general-news sectors.
