U.S.-based battery startup Lyten has agreed to purchase most of bankrupt Swedish battery maker Northvolt, potentially offering the fallen European giant a second chance. The Silicon Valley company, backed by Stellantis and FedEx, specializes in developing lithium-sulphur cells — a cleaner alternative to traditional lithium-ion batteries.
Northvolt, once seen as Europe’s strongest contender against major Asian EV battery makers, filed for bankruptcy in March, marking one of Sweden’s largest corporate failures. Lyten CEO Dan Cook told Reuters the deal, struck at a “substantial discount” to the original asset value, aims to continue the work Northvolt had started. Swedish Deputy Prime Minister Ebba Busch welcomed the agreement, calling it key to Europe’s energy independence.
Northvolt’s downfall was attributed to production challenges and failing to meet quality expectations, despite strong backing from customers like Scania. While Scania has not confirmed future orders from Lyten, it expressed satisfaction with the acquisition.
Lyten plans to restart Northvolt’s flagship Skelleftea plant in northern Sweden, with the goal of resuming lithium-ion battery deliveries by 2026. The acquisition also includes Northvolt’s energy storage business in Poland, its projects in Sweden and Germany, and its intellectual property. Work is underway to take over its Canadian operations as well.
Several former Northvolt executives will join Lyten, though not founder Peter Carlsson. The company will initially focus on securing high-yield production for a single customer before expanding to a broader market, targeting the automotive, defense, and energy storage sectors.
Lyten recently raised over $200 million in new equity to support its acquisitions and expansion, and Cook expressed confidence that automakers like BMW, Volkswagen, and Audi — once part of Northvolt’s $50 billion order book — could return sooner than expected.