U.S. battery start-up Lyten has agreed to acquire most of bankrupt Swedish battery manufacturer Northvolt, in a deal that could revive the company once hailed as Europe’s answer to Asian electric vehicle battery giants.
Lyten, a Silicon Valley-based firm developing lithium–sulphur batteries as a cleaner alternative to lithium-ion cells, is backed by Stellantis and FedEx. The acquisition follows Northvolt’s bankruptcy in March, one of Sweden’s largest corporate collapses, which triggered an urgent search for a buyer.
“Our plans are … in large part to pick up where the Northvolt team left off,” Lyten CEO and co-founder Dan Cook said, without disclosing the price but describing it as a “substantial discount” to the assets’ original value.
Northvolt’s bankruptcy trustee said the deal removed the threat of a “complete shutdown”, while Sweden’s Deputy Prime Minister Ebba Busch said it strengthened the country’s role in Europe’s energy independence.
Northvolt faced criticism over its failure to deliver battery cells of sufficient quality, despite backing from key customers such as truckmaker Scania. Gustaf Sundell, Scania’s head of ventures and new business, said it was too early to confirm future orders with Lyten but welcomed the outcome.
Lyten aims to restart Northvolt’s flagship Skelleftea plant in northern Sweden and resume lithium-ion cell production by 2026. In July, it acquired Northvolt’s energy storage business in Poland — the largest in Europe — and plans to target the automotive, defence, and energy storage sectors. The deal includes Northvolt’s projects in Sweden and Germany, along with its intellectual property, and efforts are underway to acquire its Canadian unit.
Cook said several former Northvolt executives will join Lyten, though not founder and ex-CEO Peter Carlsson. “We are focused on developing to be the leaders in locally sourced, locally manufactured batteries for both the North American and European markets right now,” he said.
Lyten recently secured more than $200 million in additional equity funding to support acquisitions and expansion. Cook said the company’s priority would be to deliver high yields for a single customer initially, before re-engaging former Northvolt clients such as BMW, Volkswagen, and Audi. “We actually think they’ll come back, perhaps quicker than people believe,” he added.
Before its collapse, Northvolt expanded into North America but later retrenched to Sweden as its financial troubles deepened, selling assets for nominal sums.
