LYTEN ACQUIRES NORTHVOLT ASSETS PLEDGING TO REVIVE EUROPEAN BATTERY PRODUCTION

The California-based company Lyten has stepped in to acquire the core assets of the bankrupt European battery manufacturer Northvolt. The deal aims to restart production and leverage a new, more cost-effective lithium-sulfur technology, potentially salvaging a key part of Europe's electric vehicle strategy.

US battery manufacturer Lyten has officially announced its acquisition of the primary assets of Swedish company Northvolt in Sweden and Germany. The purchase comes after Northvolt, once hailed as a symbol of European innovation, filed for bankruptcy earlier this year and ceased all operations in late June, resulting in the mass layoff of approximately 1,600 employees. Lyten has stated its intention to rehire many of these former staff members.

The deal includes Northvolt's gigafactory in Skellefteå, its R&D center in Västerås, and the factory under construction in Heide, Germany. With investors like Stellantis and FedEx, the California-based firm plans to restart production in the fourth quarter of this year. Lyten's strategy is to diversify its battery output beyond electric cars to include sectors like drones and AI data centers.

Northvolt's Collapse and Lyten's New Vision

Northvolt, which had secured significant investment from firms like Volkswagen and Goldman Sachs, was a cornerstone of Europe's effort to compete with Chinese battery manufacturers. However, the company's ambitious expansion plans in Germany, Canada, and Poland, combined with management and technical issues with its Chinese machinery, led to its demise.

Lyten's CEO, Dan Cook, emphasized that the acquisition will "accelerate our mission by years" and is crucial for "energy independence, national security, and the needs of artificial intelligence data centers." While the acquisition price was not disclosed, the Financial Times reported it was "heavily discounted."

A key difference in Lyten's approach is its specialization in lithium-sulfur technology, which is cheaper to produce and offers higher energy density than the lithium-ion batteries Northvolt manufactured. Lyten plans to use the Skellefteå plant to produce these advanced cells while also continuing to manufacture electric vehicle batteries using existing Northvolt technology.

Cook noted that prior to the shutdown, Northvolt's management had largely resolved its production issues. Lyten hopes to build on this progress and plans to re-establish relationships with former Northvolt clients, including Audi, Porsche, and Scania. Furthermore, Lyten is in talks with Canadian authorities to continue Northvolt's previous plan to build a factory in Quebec.