Swedish electric vehicle battery manufacturer Northvolt's empire has been seized by Lyten for a whopping $5B.
Lyten Expands Battery Production with Acquisition of Northvolt Assets
Lyten, a pioneering battery and advanced materials company based in San Jose, California, is set to significantly increase its production capacity following the acquisition of Northvolt's European battery assets. The deal, subject to regulatory approvals in Sweden and Germany, is expected to close by the end of the year.
The acquired facilities include Northvolt Ett in Skellefteå, Sweden, Northvolt Labs in Västerås, Sweden, and Northvolt Drei in Heide, Germany. These facilities boast a combined existing battery production capacity of 16 gigawatt-hours (GWh) and another 15+ GWh under construction. The acquisition gives Lyten control of over $5 billion worth of manufacturing assets.
The acquisition marks a significant step for Lyten, which specializes in lithium–sulfur batteries aimed at being about 66% less expensive than traditional lithium-ion batteries used in electric vehicles. The company's proprietary materials platform, Lyten 3D Graphene®, enables better-performing, lower-cost, and more environmentally friendly batteries, with applications spanning automotive, aerospace, defense, and drone industries.
Lyten plans to immediately restart battery production at the Northvolt Drei facility in Heide, Germany, aiming for deliveries by Q4 2025. The initial focus will be on European customers, with plans to expand globally to markets such as AI datacenters, industrial, commercial, and grid applications.
The acquisition is being funded through private equity investment and does not include Northvolt Six, which is building a new 15 GWh battery factory in Quebec. However, Lyten is in talks to acquire Northvolt Six, a move that would further bolster its production capacity.
The combination of Northvolt's manufacturing assets, Lyten's lithium-sulfur battery technology, and Lyten's US battery materials supply chain is seen as a win for energy independence in Europe and North America. Lyten's lithium-sulfur batteries are already being sold into the drone and defense markets, and the company is collaborating with its investor, Stellantis, on EV applications.
In a bid to validate its technology in space applications, Lyten is preparing to send batteries to the International Space Station. The company is also taking over all of Northvolt's remaining intellectual property.
The acquisition comes at a time when the end of the 30% federal solar tax credit is happening this year. Lyten, with its focus on lower-cost batteries, could play a crucial role in the transition towards renewable energy.
In summary, Lyten is a well-funded innovator in lithium-sulfur battery technology with a strong intellectual property base and a growing footprint in both the U.S. and Europe. The company's strategic acquisitions and collaborations position it well to meet surging demand for advanced battery solutions across multiple sectors.
- Lyten's acquisition of Northvolt's European battery assets will boost its production capacity, enabling it to produce batteries aimed at being less expensive than traditional lithium-ion batteries used in electric vehicles.
- The combined existing and under-construction battery production capacity of the acquired facilities is over 31 GWh, and Lyten will gain control of over $5 billion worth of manufacturing assets.
- With the acquisition, Lyten plans to use the Northvolt Drei facility in Heide, Germany, to produce batteries for European customers in Q4 2025, with future plans to expand globally and serve markets such as AI datacenters and grid applications.
- The acquisition of Northvolt's assets, combined with Lyten's lithium-sulfur battery technology and US battery materials supply chain, could contribute to energy independence in Europe and North America, particularly in the transition towards clean energy and renewable energy.
