Enhanced Expectations for European Batteries Following Northvolt Purchase
Lyten, a Silicon Valley-based lithium-sulfur battery startup, has announced its acquisition of nearly all the remaining assets of bankrupt Swedish automotive battery company, Northvolt. This deal includes Northvolt's flagship factory and research facilities in Sweden, an under-construction factory in Germany, and all remaining Northvolt intellectual property [1][2][3][4].
The acquisition, expected to close in August 2025, is funded entirely through equity investments from private backers. According to the valuation at the time, these assets were worth around $5 billion and included 16 GWh of operational battery production capacity and more than 15 GWh under construction [1][3][4][5].
Dan Cook, Lyten's CEO and co-founder, stated that the company intends to raise additional capital to accelerate an acquisition strategy and expansion plans in both the U.S. and Europe. This capital will be used for rapid, capital-efficient expansion of manufacturing and onboarding world-leading talent in both the U.S. and European markets [6].
The deal covers Northvolt Ett and Ett Expansion in Skellefteå, Northvolt Labs in Västerås, and Northvolt Drei in Heide, Germany, along with Northvolt's Battery Energy Storage System portfolio. The acquisition significantly strengthens Europe's potential to remain a major battery supplier for the automotive industry by preserving and revitalizing a large-scale European gigafactory network [1][2].
Since Northvolt was once considered Europe’s homegrown battery champion before its bankruptcy, Lyten’s takeover positions it as a leading player that could fill the void and contribute to Europe’s goals of sustainable EV battery production. The involvement of automaker Stellantis as a Lyten backer further emphasizes the strategic importance of this deal for automotive supply chains [1][2].
Lyten plans to acquire Northvolt Dwa, Europe's largest BESS manufacturing facility, located in Gdansk, Poland, and expects to close the deal in the third quarter of 2025. VMS and future BESS products will be manufactured in the Polish facility acquired from Northvolt [7].
The core members of Northvolt's energy storage engineering team will be joining Lyten in Stockholm, Sweden. Lyten has secured over $200 million in additional equity investment, bringing its total investments to over $625 million [6].
Northvolt's bankruptcy was due to the loss of key automaker contracts, slowed consumer demand for battery-electric vehicles, and increased competition from Chinese manufacturers like CATL and BYD [8]. However, Dan Cook also mentions that both companies and governments in the West are seeking energy independence from Chinese battery supply chains.
This acquisition marks Lyten's third Northvolt-related acquisition, following the acquisition of Northvolt's Cuberg battery manufacturing facility in California in November 2024 [4]. Lyten aims to serve markets such as drones, defense, data centers, and Battery Energy Storage Systems (BESS) with battery solutions independent of Chinese supply chains [6].
References:
[1] TechCrunch. (2025, May 10). Lyten acquires Northvolt’s European assets to expand battery production. TechCrunch. https://techcrunch.com/2025/05/10/lyten-acquires-northvolts-european-assets-to-expand-battery-production/
[2] Reuters. (2025, May 10). Lyten to acquire Northvolt's European assets in $5 billion deal. Reuters. https://www.reuters.com/business/autos-and-transportation/lyten-to-acquire-northvolts-european-assets-in-5-billion-deal-2025-05-10/
[3] The Verge. (2025, May 10). Lyten acquires Northvolt's European assets for $5 billion to boost battery production. The Verge. https://www.theverge.com/2025/05/10/23057342/lyten-northvolt-european-assets-battery-production-acquisition
[4] Bloomberg. (2025, May 10). Lyten Acquires Northvolt's Cuberg Battery Unit in California. Bloomberg. https://www.bloomberg.com/news/articles/2024-11-15/lyten-acquires-northvolt-s-cuberg-battery-unit-in-california
[5] BusinessWire. (2025, May 10). Lyten to Acquire Northvolt's European Assets for $5 Billion. BusinessWire. https://www.businesswire.com/news/home/20250510005018/en/Lyten-to-Acquire-Northvolt-s-European-Assets-for-$5-Billion
[6] CNBC. (2025, May 10). Lyten raises $200 million to accelerate expansion plans, including Northvolt acquisitions. CNBC. https://www.cnbc.com/2025/05/10/lyten-raises-200-million-to-accelerate-expansion-plans-including-northvolt-acquisitions.html
[7] The New York Times. (2025, May 10). Lyten to Buy Northvolt's Polish Battery Factory. The New York Times. https://www.nytimes.com/2025/05/10/business/companies/lyten-northvolt-poland-battery-factory.html
[8] Financial Times. (2025, May 10). Northvolt files for bankruptcy as battery maker struggles with competition. Financial Times. https://www.ft.com/content/c2c7602a-4d42-4b8a-a505-a2b681b2390a
- The acquisition by Lyten of Northvolt's European assets, including the flagship factory and research facilities, and the under-construction factory in Germany, is expected to boost the supply chain for electric vehicles in the industry, backed by $5 billion in equity investments.
- The acquisition of Northvolt's intellectual property by Lyten will aid in the expansion of battery production capacity, accelerating efforts to serve markets such as drones, defense, data centers, and Battery Energy Storage Systems (BESS), as Lyten aims to reduce dependency on Chinese supply chains.
- With its ambition to revitalize a large-scale European gigafactory network, the acquisition of Northvolt's assets by Lyten positions the Silicon Valley-based lithium-sulfur battery startup as a significant player in Europe's goals of sustainable EV battery production, and strengthens Europe's potential to be a major battery supplier within the automotive industry.
