Lyten Buys What’s Left of Northvolt in Europe
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Lyten Inc., a California startup that develops lithium-sulfur batteries, has agreed to acquire all of the remaining European assets of bankrupt manufacturer Northvolt AB.
The deal includes Northvolt’s flagship factory and a research and development facility, both in Sweden, and the site of a future factory in Germany, according to a statement. The startup said it’s committed to working with the Swedish and German governments to expand facilities at those locations.
Dan Cook, Lyten’s CEO and co-founder, declined in an interview to disclose the financial details, but confirmed that the company is buying the assets at a “significant discount” to their estimated value of roughly $5 billion.
Lyten, which counts automaker Stellantis NV among its backers, agreed last month to acquire the Polish operations of the defunct battery maker, following its purchase of Northvolt’s Cuberg facility in the U.S. last November. Once seen as Europe’s homegrown battery champion, Northvolt had a total staff of about 7,000 before a series of operational blunders forced it to file for bankruptcy last year.
Lyten will take full ownership of Northvolt Dwa ESS in Gdansk, Poland. (Lyten)
“It’s an opportunity to accelerate our ability to bring lithium-sulfur technology to the marketplace,” Cook said of Lyten’s latest acquisitions. “We have already done this in the U.S., but this has been a great opportunity for us to now proceed to do it in Europe.”
Importantly for Sweden, Lyten plans to immediately restart operations at the flagship plant in Skelleftea, which employed about 3,000 people. Production was wound down in June after the bankruptcy trustee was unable to find a buyer.
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Lyten expects to re-hire a significant number of former Northvolt employees across both Swedish sites and build up operations to eventually support thousands of jobs. The production facility in Skelleftea will initially start manufacturing lithium-ion, then transition to dual chemistry production, which will also enable the production of lithium-sulfur batteries. The investments are expected to become profitable within the next 18 to 24 months, depending on product mix.
With demand for European-made batteries still high, Cook said the company has been engaged in “constructive” discussions with former Northvolt customers. “We’re in an excellent position to pick up those conversations and convert them into commercial agreements,” he said.
Lyten, founded in 2015, has been accelerating acquisitions to tap into demand for stationary storage and military drones in Europe. It’s also moving away from exclusively making battery cells for the U.S. market amid a slowdown in electric-vehicle sales. Its investors include Prime Movers Lab, Luxembourg Future Fund, and FedEx Corp.
Looking ahead, Lyten has expressed interest in acquiring Northvolt’s last remaining future factory site — Northvolt Six in Quebec, Canada.
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The startup has spent so far about $145.7 million to prepare the site near Montreal where the new battery plant will be built. The Quebec government has a $174 million senior secured loan tied to the land.
“We have executed a binding agreement with Canada to follow an acquisition process,” Cook said. “We’re working closely with the governments of Quebec and Montreal on that.”
Written by Rafaela Lindeberg and Charles Daly
